nep-cna New Economics Papers
on China
Issue of 2006‒03‒05
six papers chosen by
Zheng Fang
Fudan University

  1. Estimating China's "Equilibrium" Real Exchange Rate By Steven Vincent Dunaway; Xiangming Li
  2. Does Inflation in China Affect the United States and Japan? By Luke Willard; Tarhan Feyzioglu
  3. Seasonalities in China's Stock Markets: Cultural or Structural? By Li L. Ong; Jason D. Mitchell
  4. China?s Fiscal System: A Work in Progress By Christine C.P. Wong; Richard M. Bird
  5. Are the markets for factories and offices integrated? Evidence from Hong Kong? By Charles Ka Yui Leung; Peiling Wei; Siu Kei Wong
  6. Institutions and Transition By Peter Murrell

  1. By: Steven Vincent Dunaway; Xiangming Li
    Date: 2005–11–02
  2. By: Luke Willard; Tarhan Feyzioglu
    Keywords: Inflation , China , United States , Japan , Deflation , Trade , Economic models ,
    Date: 2006–02–09
  3. By: Li L. Ong; Jason D. Mitchell
    Date: 2006–01–19
  4. By: Christine C.P. Wong; Richard M. Bird (Rotman School of Management, University of Toronto)
    Abstract: We argue in this paper that unless China begins to tackle more systematically the serious problems that have emerged in the finances of its various levels of sub-national government the problems to which the present unsatisfactory system give rise will over time increasingly distort resource allocation, increase distributional tensions, and slow down the impressive recent growth of the Chinese economy. Despite the lack of solid and reliable information on the size and nature of China?s real fiscal system, we show that the evidence available is generally consistent with this pessimistic reading. China?s fiscal and ? in time ? economic future thus rests to some extent on reforms to key aspects of its fiscal system, especially its intergovernmental finances. Moreover, a more consistent and purposive framework to this complex of problems seems needed. Given the scale and scope of China?s underlying public finance problems, the ?reactive gradualism? evidenced in recent ad hoc reforms to this or that piece of the fiscal system has, we suggest, run its course.
    Keywords: China;intergovernmental finance;taxation;budget
    JEL: H11 H70 O53 P21
    Date: 2005–10
  5. By: Charles Ka Yui Leung; Peiling Wei; Siu Kei Wong
    Abstract: Due to the relocation of manufacturing facilities from Hong Kong to Mainland China, it is widely believed that some vacant private factories have been used as offices in Hong Kong. Yet there is no direct and systematic evidence to support this speculation. In fact, according to MacGregor and Schwann (2003), industrial and commercial real estate shares some common features. Our research attempts to investigate empirically the price and volume relationship between industrial and commercial real estate, using both aggregate and disaggregate data from the industrial and commercial property markets in Hong Kong. The study was built on the observation that economic restructuring and geographical distance will affect the substitutability (and thus the correlation) of different types of property, and utilizes commonly used time series techniques for analysis. Policy implications are discussed.
    Keywords: aggregation bias, geographical distance, industrial real estate, substitutability
    JEL: G12 L80 R30
    Date: 2006–02
  6. By: Peter Murrell (Department of Economics, University of Maryland)
    Abstract: Prepared for The New Palgrave Dictionary of Economics, 2nd Edition, this essay examines the evolution of both institutions and economists' thinking on institutions during transition. Early in transition, institutions were virtually ignored in the majority of normative prescriptions, but were central in the evolutionary-institutional approach. Later, after events influenced intellectual developments, institutions were at the center of analysis. Growth is strongly related to institutional construction. Transition countries built institutions speedily but with marked variation across countries. Legal systems and independent governmental agencies were sources of institutional growth, while government bureaucracies and informal mechanisms detracted from institutional growth. In China, reforms addressed problems that institutions usually do, but in unusual ways.
    Keywords: Institutions, transition, evolutionary-institutional, shock therapy, gradualism, China, law
    JEL: P2 P3 N4 O17 K0
    Date: 2006–02

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