Pacific Economic Review
- Publication date:
- Nbr. 25-4, October 2020
- Nbr. 25-3, August 2020
- Nbr. 25-2, May 2020
- Nbr. 25-1, February 2020
- Nbr. 24-5, December 2019
- Nbr. 24-4, October 2019
- Nbr. 24-3, August 2019
- Nbr. 24-2, May 2019
- Nbr. 24-1, February 2019
- Nbr. 23-5, December 2018
- Nbr. 23-4, October 2018
- Nbr. 23-3, August 2018
- Nbr. 23-2, May 2018
- Nbr. 23-1, February 2018
- Nbr. 22-5, December 2017
- Nbr. 22-4, October 2017
- Nbr. 22-3, August 2017
- Nbr. 22-2, May 2017
- Nbr. 22-1, February 2017
- Nbr. 21-5, December 2016
- Issue Information
- Economic performance of state‐owned enterprises under the Chinese Communist Party's supervision: Some reflection on China's economic reform
This study examines the economic behaviour of state‐owned enterprises in China with special emphasis on the role of the state's sole party as either an agent (management) or supervisor in the enterprises. It is found that with the construction of an incentive‐compatible compensation design and the Chinese Communist Party orchestrating an appropriate objective guideline for its members to follow, state or socialist capitalism could still achieve efficient economic performance. If party members did not behave prudently or pursued their personal interests instead of the state's overall welfare, there could be grave consequences, including corruption, nepotism or even the breakdown of the system.
- Do networks or performance impact the promotion of Chinese officials? Evidence from prefecture‐level cities
This study examines the effects of connections and economic performance on the promotion of Chinese city mayors. Our study differs from the published literature in four respects. First, this study covers a comprehensive data set, including 1,422 mayors from 284 prefecture‐level cities. The use of a large data set helps resolve mixed results of past studies. Second, we use a broader range of top leaders. Third, we apply a more comprehensive definition of connections than earlier studies. Finally, we examine the effects of the policy shift of the 11th 5‐year plan on promotion of mayors. Our results reveal that the performance of a city mayor assisted his/her promotion to party secretary before 2006 but not afterwards. However, a mayor's connection with five types of top leaders is helpful. Among the four types of connection, colleagueship is the most effective in expediting the promotion of mayors. Graduating from the same university and department is also helpful but to a lesser extent. Township connection is not useful.
- Impact of tariff rates on the probability of trade relationship survival: Evidence from ASEAN+6 manufactured goods
This article explores the links between imported trade relationships, their duration and tariff rates. We use survival analysis to investigate how the probability of trade relationship survival is affected by the difference in the tariff rates. We use the ASEAN+6 as the basis of our report and consider a total of 89 trading partners for manufactured goods from 1996 to 2011. Our findings are as follows. First, low‐tariff trade survives longer than high‐tariff trade of manufactured goods. Second, we find a significantly negative correlation between tariff rates and duration, and regional trade agreements help prolong the length of trade relationships. Third, the hazard ratios of intraregional differentiated goods and the parts and components trade are lower. We have also obtained robust results for distinct specifications through consideration of production networks and Rauch's product classification. Finally, we believe that these findings could be used as a reference for other economic organizations working toward the diminution of tariff rates.
- Economic fluctuations, volatility changes and the role of government spending in China: A structural analysis
We study the economic fluctuations in China by using a standard neoclassical general equilibrium model to provide a structural analysis. We have carefully constructed measurements for economic variables from Chinese data to be consistent with the literature. We show that the government spending behaviour plays an important role in accounting for the changes in the pattern of both absolute and relative volatilities. Although we find that a general moderation in economic fluctuations after 1978 can be largely explained by the total factor productivity (TFP) process, TFP itself cannot explain the change in the pattern of relative volatilities. We show that policy changes in government spending can account for the relative volatility divergency. Counterfactual experiments are also provided to discover the role of each factor in explaining the economic fluctuations in China.
- Cost metafrontier approach for measuring the Malmquist productivity index: An example of bank groups formed after the financial reform in Taiwan
This study attempts to provide a framework under the variable returns to scale hypothesis to account for the effect of the cost scale efficiency change in the decomposition of the cost metafrontier Malmquist productivity index (CMMPI). In addition, the meta‐cost efficiency and cost frontier gap between subordinate banks of financial holding companies (FHC) and independent banks are also examined. A total of 34 banks in Taiwan are empirically analysed from 1999 to 2012. The results indicate that the meta‐cost efficiency, meta‐technical efficiency and meta‐allocative efficiency scores of subordinate banks of FHC are better than those of independent banks. The banking industry in Taiwan is found to have an improvement in cost metafrontier Malmquist productivity. The subordinate banks of FHC are also found to exhibit positive CMMPI and decomposition components, but do not achieve a significant improvement except in the case of the technical gap ratio change. The empirical results recommend that Taiwanese banks place more policy focus on the issue of scale adjustment, which should be beneficial. Based on the CMMPI decomposed results, we can gain further understanding of the growth path to enhance operational performance.
- Wage premium of Communist Party membership: Evidence from China
Social status and political connections may confer large economic benefits on an individual. Previous studies focused on China have examined the relationship between Communist Party membership and earnings and have revealed a positive correlation. However, the correlation could be partly or totally spurious. Using data from three surveys spanning three decades, we estimate the causal effect of Chinese Communist Party membership on monthly earnings in China. We find that, on average, membership in the Communist Party of China increases monthly earnings and the wage premium has grown in the last three decades. We explore potential causes and discover evidence that improvements in social networks and social rank, acquisition of job‐related qualifications and greater life satisfaction play important roles in increased earnings.
- Issue Information
- GDP competition and corporate investment: Evidence from China
This study examines whether and how macroeconomic performance competition is related to investment at firm level. We use GDP competition as a proxy of dynamic macroeconomic conditions. We find that the effect of GDP competition on firm investments is significantly positive. We also find that GDP competition destroys investment efficiency significantly, especially by increasing overinvestment. Further tests show that GDP competition is more likely to affect the investment decisions of firms controlled by governments and firms located in regions with low marketization. In addition, our analyses reveal that the provincial officials facing competitive pressure are more likely to be promoted if firm investments accelerate. We use alternative proxies to measure GDP competition and find similar results that support our inference. Our findings support the notion that GDP competition of governments distorts investment behaviour. The present paper also elucidates investment problems and dilemmas faced by emerging economies.
- Structural transformation and its implications for the Chinese economy
This study examines China's structural transformation under the assumption that its employment structure converges to that in major developed economies in one and a half decades. The required annual output differentials between tradable and nontradable sectors, productivity increment in the nontradable sector, and government expenditure increment are estimated with the goal of employment stability conditional on population ageing. It appears that labour transfer from the tradable sector to the nontradable sector would be accompanied by relatively large aggregate output changes due to population ageing and efficiency changes in the tradable sector. Consumer price and real exchange rates are less affected during structural transformation. Although fiscal deficit would increase, government expenditure as a tool to stabilize employment is welfare improving as long as job switching is not cost prohibitive.
- World Trade and the Environment: Issues and Policies
This paper provides an overview of trade, environmental and related public issues and policies. It discusses the pollution problem, the recent global warming trend, the attempts of various institutions, including the United Nations, the World Trade Organization, regional, national and other...
- Wage premium of Communist Party membership: Evidence from China
Social status and political connections may confer large economic benefits on an individual. Previous studies focused on China have examined the relationship between Communist Party membership and earnings and have revealed a positive correlation. However, the correlation could be partly or totally ...
- Do China's people favour redistribution? Evidence from an incentivized experiment
From 1949, China's leaders brought their country through three decades of income and wealth compression, which was followed by more than three decades of sharply rising inequality. What preferences do China's people hold regarding what price (if any) is worth paying for greater equality? We conduct ...
- Macroeconomic effects of government spending in China
Government spending plays an important role in determining economic performances in China. Its macroeconomic effects are analysed in this paper. We show that government spending in China Granger‐causes output, consumption and investment booms as well as inflation, and has a multiplier larger than 1....
- China's Global Influence: A Survey through the Lens of International Trade
One of the most impressive changes in the global economy in the past half‐century has been China's high and sustained growth and its integration into the global economy. This phenomenal change not only brings huge benefits to the Chinese people, but also exerts a tremendous influence on the rest of ...
- Religion and Fertility in East Asia: Evidence from the East Asian Social Survey
This article analyses the effect of religious affiliation on fertility in Japan, Korea and the Republic of China (Taiwan). It adds to the sparse empirical evidence on the effects of religious affiliation on fertility in East Asia, for both Christian and other religions. It uses an identity‐economic ...
- Monetary Policy in Low Income Countries in the Face of The Global Crisis: A Structural Analysis
We develop a dynamic stochastic general equilibrium model with a banking sector to analyse the impact of the financial crisis in developing countries and the role of the monetary policy response, with an application to Zambia. We view the crisis as a combination of three related shocks: a worsening ...
- Literature analysis of the evaluation of public training programmes in the USA, Europe and China: Implications for the evaluation of farmer training programmes in China
This review aims to inform the evaluation of Chinese farmer training programmes through comparison with studies assessing public training programmes in the USA and Europe. The results of comparative analysis from 62 studies in the USA, Europe and Mainland China suggest that evaluation studies of...
- New cooperative medical scheme and medical expenditure in rural China
The New Cooperative Medical Scheme (NCMS) was launched in rural China in 2003, aiming to safeguard rural households against catastrophic medical expenditure. The implementation of the programme has been surrounded by the concern for the potential uncontrollable growth in medical expenditure due to...
- Tenure Security and Long‐term Investment on Tenanted Land: Evidence from Colonial Taiwan
We use farm diary data from Taiwan in the 1920s and 1930s to estimate the impacts of a state‐wide tenancy reform on tenants’ investment in the farmland and production outcome. The reform, commencing in 1922, enhanced the tenure security for the tenants by promoting written contracts that extended...