Regional Equality and National Development in China: Is There a Trade-Off?

Despite high economic growth over the past 30 years, China’s substantial and persistent regional disparities have been the subject of continuing concern to policy makers, as well as the target of a wide variety of policies. An important issue in the policy debate about whether and how best to attack these disparities is whether measures designed to improve regional equality come at a cost to national development, i.e. whether there is a trade-off between the level of national output and the equality of its distribution across the regions. There is little analysis of this issue in the literature. We help fill this gap by setting up a two-region model designed to capture some of the salient features of the Chinese economy. We subject this model to a number of policy shocks and assess the effects on regional disparities in per capita output, on the one hand, and on aggregate output on the other to investigate the trade-off. We also consider income and welfare as alternatives to output. We find that disparities in per capita output, income and welfare often move in different directions so that it is important to specify which disparity is being targeted. Moreover, since both disparities and aggregate outcomes are endogenous, how they move together depends on the nature of the shock driving the model. Thus, some policies designed to reduce disparities face a trade-off and others do not. Only a reduction in internal migration restrictions unambiguously reduces all three disparity measures and increases aggregate output, incomestock prices, output, China

Reducing Regional Disparities in China: An Evaluation of Alternative Policies

Regional disparities in output per capita and income in China are large and persistent. They have been the subject of considerable concern to policy-makers at the highest level for decades, yet little is known about the effectiveness of various alternative policies which may be used to combat them. In this paper we address this issue by analysing the effectiveness of a range of policies by both regional and central governments. We use a small model with various features of the Chinese economy: two regions (the interior and the coast), two industries (agriculture and manufacturing), inter-regional capital mobility, internal migration subject to the hukou system of household registration and some features of the Chinese tax and expenditure system. The model is calibrated to Chinese data and simulated to analyse the effects of a number of policies on a range of variables but focussing on per capita output disparities and welfare. We find that a policy reducing internal migration costs is effective in reducing the per capita output gap but does so at a substantial cost to the coast. Policies which improve agricultural productivity in the interior region are most likely to both reduce the gap and make both regions better off. Changes in government consumption expenditure, central government fiscal redistributions and tax cuts, on the other hand, are less effective and have their long-run effectiveness reduced by migration.regional disparities, China, numerical modelling, hukou

Inter-Regional Spillovers in China: The Importance of Common Shocks and the Definition of Regions

This paper examines the question of inter-regional spillovers in China. We argue that this is a central question in Chinese economic policy, given the marked regional disparities that exist and the concern of policy-makers to ameliorate them. We analyse this question within the framework of a six-region vectorautoregressive model which we subject to extensive sensitivity analysis, with particular attention paid to the effects on the results of strong common output movements. We find the results of dynamic simulations to be importantly dependent on model specification; in particular, they are sensitive to the order in which the variables enter the model. After an assessment of various alternatives, we are able to specify a model with tolerable robustness by using data which has been purged of the effects of national output fluctuations. We find some expected but also some unexpected results. In the first category, the Yellow River and Changjiang River regions are found to have spillover effects on other regions although they are more extensive for the former; the South Western region has no significant spillover effects on the rest of the country, consistently with the results of previous research. However, in contrast both to other research and to our expectations, shocks to the South Eastern region affect mainly the region itself with little spillover to the other regions. The same is true of the North East region while the North West region has extensive spillovers to other regions. We conclude that there is still much to be learned about the magnitude and timing of inter-regional spillovers before firm policy conclusions can be drawn.

Existence of Solutions to Nonlinear Langevin Equation Involving Two Fractional Orders with Boundary Value Conditions

We study a boundary value problem to Langevin equation involving two fractional orders. The Banach fixed point theorem and Krasnoselskii's fixed point theorem are applied to establish the existence results.</p

Regional Output Spillovers in China: Estimates from a VAR Model

Interregional spillover effects are central to China’s growth policy; yet relatively little is known about the strength and duration of these spillovers and whether their characteristics have changed over time. This paper examines the spillover of output between the three commonly-used regions of China: coastal, central and western regions. We find that there are strong spillovers from the coastal region to both other regions, from the central region to the western region but that shocks to the western region have no flow-on effect for the other two regions. Thus a policy of developing the coastal region is likely to indirectly benefit the other two regions.Regional Spillovers, China, regional growth

Inter-Regional Output Spillovers in China: Disentangling National from Regional Shocks

This paper reports an investigation of the spillover effects of output shocks between regions in China. We use a six-region classification first suggested about two decades ago which still captures relatively homogeneous regions. The six regions are: South East, Changjiang River, Yellow River, North East, South West and North West. We start from a recent paper by Groenewold, Lee and Chen (2005b) which uses the same six regions and a vector autoregressive (VAR) framework. They find that the spillover effects are crucially dependent on the order of the variables in the model and argue that this is due to common national influences. They overcome the “ordering problem” by purging the regional outputs of their common national components using a preliminary regression of regional outputs on national output. We implement an alternative solution to the ordering problem which does not involve this two-step procedure. We proceed by including national output directly into our model. Moreover, we extend their analysis by investigating Granger causality between regional and national output measures as well as block exogeneity. Our results confirm important conclusions of the earlier paper but also raise some interesting differences.

An Intelligent Model for Stock Investment with Buffett Strategy, Classifier System, Neural Network and Linear Programming

“The Intelligent Model for Stock Investment with Buffett Strategy, Classifier System, Neural Network and Linear Programming” was studied for developing an intelligent model which can learn more knowledge regarding to stock investment with artificial intelligence technology. Classifier system, neural network, fundamental financial investment factors and linear programming are the fundamental components for the research. Knowledge transformation and genetic evolution capability was discussed in the article, too. Furthermore, the investment strategy developed by Warren E. Buffett[17], the great financial investment master, was the major knowledge which was practiced in the article. For realizing more detail about learning system, a lot of topics regarding to artificial intelligence were discussed in advanced, including “A Market-Based Rule Learning System” [1], “Dynamic Trading Strategy Learning Model using Learning Classifier System” [2], “Nonlinear Index Prediction” [3], “Financial Decision Support with Hybrid Genetic and Neural Based Modeling Tool” [4] and “Fuzzy Interval methods in Investment risk Appraisal” [5]. According to the study mentioned above, the ideas to give intelligent model, especially with genetic algorithm, bring the direction for the advanced financial investment strategy and operation. Therefore, it was why a novel intelligent model with Buffett strategy, classifier system, neural network and linear programming proposed in the article

Expression of fatty acid synthesis genes and fatty acid accumulation in haematococcus pluvialis under different stressors

<p>Abstract</p> <p>Background</p> <p>Biofuel has been the focus of intensive global research over the past few years. The development of 4^thgeneration biofuel production (algae-to-biofuels) based on metabolic engineering of algae is still in its infancy, one of the main barriers is our lacking of understanding of microalgal growth, metabolism and biofuel production. Although fatty acid (FA) biosynthesis pathway genes have been all cloned and biosynthesis pathway was built up in some higher plants, the molecular mechanism for its regulation in microalgae is far away from elucidation.</p> <p>Results</p> <p>We cloned main key genes for FA biosynthesis in <it>Haematococcus pluvialis</it>, a green microalga as a potential biodiesel feedstock, and investigated the correlations between their expression alternation and FA composition and content detected by GC-MS under different stress treatments, such as nitrogen depletion, salinity, high or low temperature. Our results showed that high temperature, high salinity, and nitrogen depletion treatments played significant roles in promoting microalgal FA synthesis, while FA qualities were not changed much. Correlation analysis showed that acyl carrier protein (ACP), 3-ketoacyl-ACP-synthase (KAS), and acyl-ACP thioesterase (FATA) gene expression had significant correlations with monounsaturated FA (MUFA) synthesis and polyunsaturated FA (PUFA) synthesis.</p> <p>Conclusions</p> <p>We proposed that ACP, KAS, and FATA in <it>H. pluvialis </it>may play an important role in FA synthesis and may be rate limiting genes, which probably could be modified for the further study of metabolic engineering to improve microalgal biofuel quality and production.</p