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The present research aims to shed light on the effects of monetary policy on China's tourism market development from 2004 to 2016. Monetary policy plays an increasingly important role in China's economy. With the Chinese economy in rapid development, the country's tourism market experienced significant growth. This study uses the Granger Causality test and factor-augmented vector auto-regression (FAVAR) model to identify the effects of monetary policy on China's tourism market through four transmission mechanism channels. Our results show that macroeconomic growth promotes China's tourism market development. Moreover, the money supply channel, exchange rate channel, and other assets channel have significant and adverse effects on China's tourism market development., Author(s): Yunpeng Sun [sup.1] , Haoning Li [sup.1] , Yousaf Ali Khan [sup.2] [sup.3] Author Affiliations: (1) grid.464478.d, 0000 0000 9729 0286, School of Economics, Tianjin University of Commerce Tianjin, [...]

The tension between ensuring open government information and maintaining national security is a widespread problem around the world. This study focuses on the disclosure of budgetary information and its tension with vaguely defined state secrecy requirements in the Chinese context. Through a survey of three government departments that potentially involve state secrets across 36 Chinese municipalities, we find that there exists no consensus on whether to make budgetary information public, even for the same department across different jurisdictions. In addition, departments that chose disclosure vary considerably in the scope and depth of their transparency. Without having the boundaries clarified by law, disclosure by request, as a supplemental behavior to proactive disclosure, can rarely be successful. Our findings suggest that future legislation ought to clarify the legitimate scope of restrictions on budget transparency on the grounds of state secrecy., Author(s): Longjin Chen [sup.1] , Junling Zhang [sup.2] Author Affiliations: (1) grid.263906.8, Department of Economics & Center for Economic Research, College of Economics and Management, Southwest University, , Chongqing, China [...]

By using unique administrative personal income tax data covering the population of a middle-sized Chinese city from 2009 to 2013, we explore how minimum wage adjustments affect wages of low-wage workers. The empirical evidence documented in this paper suggests a unique pattern of minimum wage regulation: while it permits wages to stay below the prevailing minimum wage threshold temporarily, it does encourage a higher growth rate for wages below the threshold. Overall, such a pattern might help lessen any downward pressures on employment, while ensuring that low-wage earners gradually get better off over time. (JEL J3, J6, P5), I. INTRODUCTION A vast literature investigates the impacts of minimum wage on inequality (e.g., DiNardo, Fortin, and Lemieux 1996) and employment (see the literature review by Neumark and Wascher 2007). [...]

This paper estimates and compares the cost efficiency of the Chinese banking industry among different ownership types for the period 2003-2014, using the stochastic metafrontier model. We find that foreign banks have the lowest cost frontier, while state-owned commercial banks undertake the least sophisticated technology. Moreover, the results of the upward trend in the technology gap ratio (TGR) and in metafrontier cost efficiency support that a more open financial market is able to enhance banking efficiency. As for the role of environmental conditions, off-balance sheet items, nonperforming loans, and financial market structure significantly impact the TGRs of different bank types. (JEL C51, G21, D24), I. INTRODUCTION Many academic researchers have looked into the issue of whether deregulation, globalization, and various financial innovations--which are frequently accompanied by increasing competition, operating risk, and global risk--influence bank [...]

We investigate the effect of uncertainty on home durable purchase decisions, and empirically evaluate the efficacy of consumer durable policies under uncertainty. A model of lumpy home capital adjustment shows that elevated uncertainty leads households to adopt a cautionary perspective and postpone their capital adjustment. We test this prediction using microevidence from China where both uncertainty and home production are substantial. We exploit a wide-scale rebate program funded by the Chinese government as a natural experiment, and examine the impact on household investment. We find strong, significant, and robust evidence that greater income uncertainty inhibits durable adjustment. Our findings highlight the impediment that income uncertainty poses to investment in home durables, which are often considered as 'engines of liberation' in emerging economies. (JEL Ell, E64, J22, 016, 023, D91), I. INTRODUCTION Consumer durables are of critical importance as they serve as 'engines of liberation' (Greenwood, Seshadri, and Yorukoglu 2005) that lead to increased labor supply, and thus are instrumental [...]

INTRODUCTION The monetary policy has been playing an important role in China's economic growth. For example, Chen, Higgins, Waggoner and Zha (2016a) found strong evidence that China's monetary policy is [...]

The Trump administration began the year by pivoting in its stated approaches to trade with China and Mexico, backing off from threats to overhaul NAFTA, and 'redefining' Chinese currency manipulation [...]

We examine various factors that influence the effects of government-subsidized research and development (R&D) programs on firm productivity. Based on a panel dataset of Chinese firms, we find the effects of the Innovation Fund for Small and Medium Technology Based Firms (Innofund) are dynamic over time and are heterogeneous depending on funding forms and the level of marketization and economic development across regions. In general, Innfound has significant and positive effects on firm productivity in both the short and long run. However, the short-term effects of Innofund are stronger than the long-term ones. Additionally, the positive effects of Innofund are stronger for firms backed by interest-free bank loans than those supported by appropriation. Meanwhile, Innofund has stronger positive effects in provinces that are less market-oriented or less developed economically. Finally, the short-term effects of Innofund stay stronger than the long-term ones even after we control the funding forms and the market conditions across regions. Identification and selection concerns are addressed through the propensity score matching approach and two-stage estimation. (JEL G28 038 H76), I. INTRODUCTION Government funding for corporate research and development (R&D) activities is introduced as a solution for the market failure of underinvestment in R&D by profit-driven enterprises (Arrow 1962; Hall [...]

Prominent development institutions and researchers have documented the ascendance of China in the global political economy and mainly explored how the global balance of power is affected by China's growing economic expansion. Political economists have argued that it is part of the generic economic power shift from the global north to south whilst security studies place emphasis on Chinese national geopolitical interests in several regions. This article discusses what lessons can be drawn from China's developmental state experience and how these can inform Sub-Saharan African developmental strategies. We argue that China's rise has been driven by both market and non-market institutions and show how peculiar contextual historical and socio-political factors have been integral to building the Chinese developmental state. This demonstrates the importance of building effective state institutions to support sustainable economic growth and human development. We highlight the principles shaping institutional mechanisms relating to the rapid economic growth and argue that African governments should apply these in their attempts to rebuild state capacity. However, we also point out that negative trends such as authoritarianism and persistent inequality should not be replicated. Rather, Sub-Saharan Africa should build democratic developmental states characterised by pro-poor sustainable inclusive growth., 1. Introduction Recent reports on Africa's development displayed high levels of optimism. This is different from previous pessimistic accounts about the future of the continent. The new view on the [...]

ON 29 JUNE 2015, THE LEADERS OF CHINA AND REPRESENTATIVES OF FIFTY-SIX nations gathered in Beijing to sign the Memorandum of Understanding for the creation of the Asian Infrastructure Investment [...]

After more than three decades of economic reform, China has transformed from being one of the poorest economies in the world to being the second-largest economy measured by nominal exchange [...]