Experimentation in securities market structure and regulation in China: from state to market

A key feature of the socialist market economy in China is the development of securities markets so as to facilitate entrepreneurship. With the national securities market now well established attention has shifted to the development of lower tier markets that may be able to meet the financing needs of smaller scale enterprises. In this article we examine how the concept of experimentation has been applied to the process of developing such markets and the regulatory framework in which they operate. We begin with a survey and critique of the policy and regulatory framework within which lower-tier markets have evolved. We argue that experimentation has been important in China but that it operates in a unique way as a result of the institutional structure in which securities markets are located. We then focus more specifically on the regulatory framework for lower tier markets and present two case studies focused on the establishment and operation of two local equity exchanges in a single province (LiaoNing). While this evidence supports our view on the significance of experimentation it also highlights the problems associated with developing lower-tier securities markets within the current policy framework

A Study on the Development of Regional Marine Industry in China

The 21st century is a century belonging to the oceans, and the ocean plays a vital role in economic and social development. China is rich in marine resources, mainly distributed among eleven marine coastal provinces and cities. With the constant development of the ocean, the marine industries grow rapidly. In China, the “marine industry” refers to the production of developing, utilizing and protecting the ocean, which is also divided into a primary marine industry, a secondary marine industry, and a tertiary marine industry (China Marine Statistical Yearbook, 2017). To study the development of regional marine industries will drive the growth of the regional land economy. As there is a strong correlation between the development of the marine industry and the creation of shore-based organization, it is of great significance to analyze the current status of the regional marine industry in China, which has profound effect to theory and practice for exploring the future development of the regional marine industry. Against this background, this study firstly defines and analyzes the meaning of the marine industry and marine industrial competitiveness by combing the previous literature, and analyzing the overview of regional marine industry and the development of the three marine industries in China. Secondly, this study compares the development of regional marine industry from the perspective of competitiveness and establishes the evaluation index system which includes six first-class targets and sixteen second-class targets. Through MATLAB software, the entropy method is applied to evaluate the competitiveness of regional marine industries. Then, disparities found in regional marine industrial development are analyzed for their reasons. Thirdly, this study establishes the panel data model to analyze the factors influencing the development of regional marine industries in China. Regional gross ocean products (GROP) represent the dependent variable whilst the labor factor, capital factor, technological factor, and environmental factor represent the independent variables. This study also compares these factors, deemed as key influencing elements for the regional development of the three marine industries and the international competency. In general, this study gives the conclusions from two perspectives. On the one hand, there are development disparities in the regional marine industry in China which are seen by comparing the regional marine industrial competitiveness. It is shown that Guangdong, Shandong, and Shanghai have stronger competitive advantages. On the other hand, Guangxi, Hebei and Hainan lack competitive advantages. In addition, marine economic capacity, marine human resources, and marine technology occupy major shares in the evaluation of regional marine industrial competitiveness. Additionally, this study finds that labor, technology, capital, and environment have an impact on the development of the regional marine industries. Labor (that is the ocean-related employed), technology, research funds (one of the capital factors), and marine pollution treatments (one of the environmental factors) have a significant positive influence on development of regional marine industry. At the same time, these selected factors each affect the regional development of China’s three marine industries and international competency to a different extent. Combining the actual development of regional marine industries in China with the results of empirical analyses, this study puts forward suggestions to enhance the development of the regional marine industries in China.Chapter 1 Introduction 1 1.1 Background of Research 1 1.2 Purposes of Research 2 1.3 Methodology 3 1.4 Outline of Research 4 Chapter 2 Basic Concepts and Literature Review 6 2.1 Basic Concepts 6 2.1.1 Marine industry 6 2.1.2 Industrial competitiveness 8 2.1.3 Industrial cluster 10 2.2 Literature Review 11 2.2.1 Literature review on the competitiveness of marine industry 11 2.2.2 Literature review on the development of marine industry 17 Chapter 3 The Development of Chinese Marine Industry 26 3.1 The Current Situation of Chinese Marine Industry System 26 3.2 The Development of Chinese Regional Marine Industries 28 3.2.1The division of Chinese marine regions 28 3.2.2 The marine industry distribution in regions 30 3.3 Structure of the Chinese Marine Industry 35 3.3.1 Chinese primary marine industry 35 3.3.2 Chinese secondary marine industry 36 3.3.3 Chinese tertiary marine industry 42 3.3.4 Obstacles of China’s three marine industries 44 Chapter 4 A Comparative Analysis on Regional Marine Industry in China 49 4.1 Factors Influencing the Marine Industrial Competitiveness 49 4.2 The Evaluation Index System 55 4.2.1 The purpose of the establishment of the index system 55 4.2.2 The principles of the establishment of index system 56 4.2.3 The establishment of the evaluation index system 59 4.3 Empirical Analysis 65 4.3.1 The selection of evaluation methods 65 4.3.2 Data source 69 4.3.3 Results 70 4.4 Summary 92 Chapter 5 Empirical Tests for the Development of Regional Marine Industries in China 95 5.1 The Selection of Variables and Data Source 96 5.1.1 The selection of variables 96 5.1.2 Data source 99 5.2 Empirical Tests 101 5.2.1 Regression estimation of regional marine industry (GROP) 101 5.2.2 Regression estimation of primary marine industry 108 5.2.3 Regression estimation of secondary marine industry 110 5.2.4 Regression estimation of tertiary marine industry 112 5.2.5 Regression estimation on international competency 115 5.3 Summary 116 Chapter 6 Conclusions 120 6.1 Research Findings 120 6.2 Implications 121 6.3 Further Study 123 References 124Docto

The distribution of foreign direct investment in China

Foreign direct investment (FDI) has played a major role in China's push toward a market-oriented economy. Recent inflows account for 40 percent of combined flows of FDI to all developing countries, making China the biggest developing country FDI recipient. This record is impressive, but certain problems must be overcome if FDI is to continue to help sustain the country's record growth rate and further its economic development. For one thing, FDI in China is highly concentrated geographically, and its sector distribution is highly uneven. The authors empirically analyze the geographic determinants of FDI in China. They find that FDI's geographical distribution in China is determined mostly by GNP, infrastructure development, level of general education, and coastal location. Althoughthe sectoral distribution of FDI is coming into line with the rest of the world, in the past, FDI has been biased toward speculative types of investment, especially in the real estate sector.International Terrorism&Counterterrorism,Environmental Economics&Policies,Banks&Banking Reform,Foreign Direct Investment,Economic Theory&Research

Regional specialization in China's biopharmaceutical industry

Purpose: The purpose of this paper is to explore patterns as well as determinants of regional specialisation in China's biopharmaceutical industry. It identifies and characterizes different types of enterprises engaged in the biopharmaceutical sector in terms of their business organisation and regional set up. Design/methodology/approach: Based on data compilations not yet employed in academic analysis as well as personal interviews in China, structural determinants and driving forces of development are analysed against the background of the innovation systems literature. Findings: The geography of innovation in China's biopharmaceutical industry is determined by both, government policy and the strategic location decisions of entrepreneurs. While local‐government support of firm clustering has contributed to a dispersion of industrial activity throughout China, the firms networks are spanning clusters. Effectively, domestic firms are turning into multi‐regional companies locating activities such as R&D and manufacturing at different clusters. Originality/value: The paper adds to the literature in so far as it throws light on an until now under‐researched field of China's innovation system. It identifies the concept of multi‐regionalism among domestic non‐state enterprises as an important parameter for understanding success and regional distribution of the industry

How do institutions affect auditor reporting behavior? empirical evidence from China

It is well documented in cross-country research that institutions, both economic and political, affect the reporting behavior of auditors and audit services. These findings are based on the assumption that institutions vary across countries but are more homogeneous within a country. However, cross-country research suffers from the problems of country-specific cultures, accounting rules, and regulations, and can be criticized for the use of small sample sizes, potential endogeneity, and the correlation of omitted variables. This study overcomes these problems by engaging in within-country research. Specifically, this study examines how variations in the institutional environment within China affect auditor reporting behavior. Since the initiation of the open door policy in the early 1980s, China’s institutional environment has, from both the economic and political perspectives, undergone different development stages that have moved east to west across the provinces. This thesis takes advantage of these special institutional characteristics in China to test the influence of institutions on auditor reporting behavior within a single country. Based on the NERI Index (2001) of Marketization (NIM) (Fan and Wang, 2003), I classify China’s 30 provinces into “good” and “poor” institutional regions. In poor regions, the local economy is more influenced by local governments, and suffers from an underdeveloped credit market and a poorer legal environment. Taking into account the close relationship between local governments and local government-owned companies, the absolute power of resource allocation by governments, and the low litigation risk, I hypothesize that auditors in poor institutional regions tend to be lenient to local government-owned companies by issuing them with more unqualified initial and subsequent audit opinions. I collected 8,039 firm-year observations from the Chinese stock market, the results from which provide evidence to support the hypotheses. This study extends the previous research of Chan, Lin and Mo (2006) by revealing that the lenient reporting behavior of local auditors toward local government-owned companies is more prevalent in regions with a poor institutional environment. The findings of this thesis have rich implications for policy-makers and regulators in China. One implication is that institutional improvement is a key factor in the creation of a quality audit profession, even when uniform national auditing regulations have been established

Labor mobility under the background of industrial relocation

Due to the high land price and consumption levels, the demand for resources and cheap labour, as well as the environmental problems in the east, enterprises and industries that had previously gathered on the coast have begun to relocate or semi-relocate to the central and west of China. Simultaneously, the relax of the household registration allows migrants to move wherever they please, which is driving the development of the labour market and industrialisation due to labour mobility and labour reallocation. As a result, analysing labour mobility in light of enterprise relocation is important in terms of balancing regional development and reasonable population policies. This thesis posits that despite the coastal area of China being dominant in the labour market since the 1990s, an “east-to-central and west” labour migration tendency, accompanied with enterprise relocation, has occurred. The whole thesis is organised based on the principle of “put forward the question—analyse the question—solve the problem”. In order to study the relationship between industrial relocation and labor mobility, the research methods will combine the theoretical research and empirical studies with both quantitative and qualitative analysis. Despite the traditional method of obtaining evidence----questionnaire, this thesis uses in-depth interviews to improve the authenticity and objectivity. Fist of all, the interaction value model was used to analyse the regional migration pattern in China, whereby it was concluded that the “gradient eastern-ward one-way migration” has been replaced by a “stronger eastern-ward and weaker western-ward bidirectional migration”. Simultaneously, the future prediction of the interprovincial migration, based on the constrained gravity model, confirmed this returning tendency. After a brief introduction of industrial relocation in China, the general relationship between industrial relocation and population migration was analysed, which offers a direct impression in terms of the influences of industrial relocation on mobility. Besides, determinants of respondents’ intentions to go back to their places of household registration are investigated, and results show that personal attributes, working condition, social participation and job satisfaction as well as location can all predict respondent´s return intentions in the in-migrated region, while none variables related with location and job satisfaction are significant in the out-migrated region. This is followed by the analysis on influences of industrial relocation on people’s willingness to migrate with job. Personal attributes, working condition and industrial relocation are all associated with their willingness to move, especially the enterprise relocation factors such as in-migrated enterprises in employee´s resident or working places and range of industrial relocation. The interviews with the staffs in Foxconn also confirm the impacts of industrial relocation on workers’ intention to migrate. This thesis, studying the relationship between industrial relocation and labor mobility, attempts to promote provide theoretical basis for migration policy and regional sustainable development.Debido al alto precio y consumo del suelo, la demanda de recursos y mano de obra barata, así como los problemas ambientales en el este, las empresas e industrias que se habían concentrado previamente en la costa han comenzado a reubicarse o semi reubicarse al centro y al oeste de China. Simultáneamente, la relajación del registro doméstico permite a los migrantes moverse donde quieran, lo que está impulsando el desarrollo del mercado laboral y la industrialización debido a la movilidad laboral y a la reasignación laboral. Como resultado, el análisis de la movilidad laboral a la luz de la reubicación de empresas es importante en términos de equilibrio entre el desarrollo regional y las políticas de población razonables. Esta tesis postula que, a pesar de que la zona costera de China es dominante en el mercado laboral desde la década de 1990, se ha producido una tendencia a la migración laboral "de este a centro y a oeste", acompañada de reubicación empresarial. Toda la tesis está organizada en base al principio de "planteamiento de la cuestión-analizar la pregunta-resolver el problema". Para estudiar la relación entre la reubicación industrial y la movilidad laboral, los métodos de investigación combinarán la investigación teórica y los estudios empíricos con análisis cuantitativos y cualitativos. A pesar del método tradicional de obtención de evidencia -cuestionario-, esta tesis utiliza entrevistas en profundidad para mejorar la autenticidad y la objetividad. En primer lugar, el modelo de valor de interacción se utilizó para analizar el patrón de migración regional en China, por lo que se concluyó que "la migración de un solo sentido hacia el este" ha sido reemplazada por una "zona oriental más fuerte y más débil del oeste- migración bidireccional". Simultáneamente, la predicción futura de la migración interprovincial, basada en el modelo de gravedad restringida, confirmó esta tendencia recurrente. Después de una breve introducción de la reubicación industrial en China, se analizó la relación general entre la reubicación industrial y la migración de la población, lo que ofrece una impresión directa en términos de las influencias de la reubicación industrial en la movilidad. Además, se investigan los determinantes de las intenciones de los encuestados de volver a sus lugares de registro familiar, y los resultados muestran que los atributos personales, las condiciones de trabajo, la participación social y la satisfacción laboral, así como la ubicación, pueden predecir las intenciones de retorno del encuestado en el región migrada, mientras que ninguna variable relacionada con la ubicación y la satisfacción laboral es significativa en la región migrada. Esto es seguido por el análisis sobre las influencias de la reubicación industrial en la voluntad de las personas de migrar con el trabajo. Los atributos personales, las condiciones de trabajo y la reubicación industrial están asociados con su disposición a mudarse, especialmente los factores de reubicación de la empresa, como las empresas inmigradas en los lugares de residencia o trabajo de los empleados y el rango de reubicación industrial. Las entrevistas con el personal de Foxconn también confirman los impactos de la reubicación industrial en la intención de los trabajadores de migrar. Esta tesis, que estudia la relación entre la reubicación industrial y la movilidad laboral, intenta promover una base teórica para la política de migración y el desarrollo sostenible regiona

Intangible resources, agglomeration effect of FDI intensity, and firm performance: Evidence from Chinese semiconductor firms

This study analyzes the impact of intangible resources on firm performance in an emerging economy context. Intangible resources are considered essential to firms? competitive advantage; however, we argue that firms? intangible resources can be negatively related with performance in emerging economies, due to their weak intellectual property rights protection. Furthermore, we incorporate the resource-based view and geographical agglomeration perspective to propose that geographical locations with dense foreign direct investment can affect the appropriability of intangible resources, thereby moderating the relationship between intangible resources and firm performance. We find empirical evidence to support our argument by examining 70 semiconductor firms in China from 1999 to 2006 period.intangible resources, intellectual property, agglomeration, foreign direct investment, emerging economy

Regional Finance and Regional Disparities in China

China’s growth has been spectacularly high and persistent over the last few decades. However, there have been regular expressions of concern about the uneven distribution of the benefits across regions and, at times, it has been asserted that the regional distribution of available investment funds has played an important role – national financial institutions (mainly state-owned banks) have redirected deposits from the inland to loans to large institutions in the more prosperous coastal regions. At the same time, smaller regionally-focussed institutions are likely to improve the distribution of funds. We use a panel data set disaggregated by province for the years 1986 to 2004 to test these propositions. We employ recent panel unit roots and cointegration tests using data for state-owned bank loans as well as loans by rural credit cooperatives. We find that financial disparities are related to output disparities, that this relationship is positive, that it is stronger for rural credit cooperatives than for state-owned banks and that this relationship is causal in both the long and short runs. A reduction in financial disparities can be expected to lead a narrowing of output disparities in the short run and in the long run with the effect being larger for rural credit cooperatives than for state-owned commercial banks.regional disparities, panel econometrics, regional finance, China

An analysis of the travel motivation of tourists from the People’s Republic of China

Since the Chinese economic reforms, the government’s policy towards travelling and tourism activity has changed. The population of the People’s Republic of China gained significant rights and possibilities to travel in their own country and conquer the international tourism market by package tours. However, the literature so far neglected the motivation of Chinese travellers in choosing their holiday destination. We compiled a new database of the preferences of Chinese tourists in domestic tourism and foreign tourists in China. The identification of the specific preferences of Chinese travellers helps to assess in how far tourists’ preferences for attractions and regions are similar. Another aspect of investigation is about the impact of tourism promotion in China on destination choice. The results of an analysis of Chinese marketing strategies are translated into recommendations for foreign travel promotion that targets at Chinese tourists.Tourism, China, travel motivation, pull factor, tourism promotion

中国における国家大学サイエンス・パークと効率性 ― 将来の戦略に向けての分析と提言

Tohoku University福嶋路課