The fruits of China＇s rapid economic development over the 3 decades have not been distributed fairly across different regions. Using data from a sample of 815 Chinese listed firrns during 1998-2004, our error-correct...The fruits of China＇s rapid economic development over the 3 decades have not been distributed fairly across different regions. Using data from a sample of 815 Chinese listed firrns during 1998-2004, our error-correction investment model showes evidence of different financial constraints on firms＇ investment in different regions. We argue that China＇s regional development policies have contributed greatly to the regional inequalities. To control the rising inequality, China has shifted its focus from the coast to the interior regions. However, it is becoming increasingly difficult for the government to direct the economy, as market mechanisms now have afar greater influence on the economy than the government does. The people-centered approach of the current leadership has meant that substantial attention has been placed on regional development disparities in an attempt to build a ＂harmonious society. ＂ China needs further extensive reforms if all the measures for reducing regional disparity are to be effective.展开更多
This study investigated the impact of China’s monetary policy on both the money market and stock markets,assuming that non-policy variables would not respond contemporaneously to changes in policy variables.Monetary ...This study investigated the impact of China’s monetary policy on both the money market and stock markets,assuming that non-policy variables would not respond contemporaneously to changes in policy variables.Monetary policy adjustments are swiftly observed in money markets and gradually extend to the stock market.The study examined the effects of monetary policy shocks using three primary instruments:interest rate policy,reserve requirement ratio,and open market operations.Monthly data from 2007 to 2013 were analyzed using vector error correction(VEC)models.The findings suggest a likely presence of long-lasting and stable relationships among monetary policy,the money market,and stock markets.This research holds practical implications for Chinese policymakers,particularly in managing the challenges associated with fluctuation risks linked to high foreign exchange reserves,aiming to achieve autonomy in monetary policy and formulate effective monetary strategies to stimulate economic growth.展开更多
This paper studies the relationships of the monetary policy, stock market and real investment in China based on Markov-Switching-Vector Error Correction Model. It shows that there is a cointegration relationship among...This paper studies the relationships of the monetary policy, stock market and real investment in China based on Markov-Switching-Vector Error Correction Model. It shows that there is a cointegration relationship among the three ones. We disclose the riddle that the stock market is in recession, but the growth rate of economy is very high in recent years. We also find that Chinese economy operated stably most of the time during the past 8 years. But if the economy is difficult to continue its high growth, it is more likely to appear ＂hard landing＂ than ＂soft landing＂. The impulse response analysis indicates the asymmetry between the ＂too cold＂ economy regime and the ＂too hot＂ regime. And the economy will oscillate during the subsequent time when it is shocked under the ＂too hot＂ regime.展开更多
文摘The fruits of China＇s rapid economic development over the 3 decades have not been distributed fairly across different regions. Using data from a sample of 815 Chinese listed firrns during 1998-2004, our error-correction investment model showes evidence of different financial constraints on firms＇ investment in different regions. We argue that China＇s regional development policies have contributed greatly to the regional inequalities. To control the rising inequality, China has shifted its focus from the coast to the interior regions. However, it is becoming increasingly difficult for the government to direct the economy, as market mechanisms now have afar greater influence on the economy than the government does. The people-centered approach of the current leadership has meant that substantial attention has been placed on regional development disparities in an attempt to build a ＂harmonious society. ＂ China needs further extensive reforms if all the measures for reducing regional disparity are to be effective.
文摘This study investigated the impact of China’s monetary policy on both the money market and stock markets,assuming that non-policy variables would not respond contemporaneously to changes in policy variables.Monetary policy adjustments are swiftly observed in money markets and gradually extend to the stock market.The study examined the effects of monetary policy shocks using three primary instruments:interest rate policy,reserve requirement ratio,and open market operations.Monthly data from 2007 to 2013 were analyzed using vector error correction(VEC)models.The findings suggest a likely presence of long-lasting and stable relationships among monetary policy,the money market,and stock markets.This research holds practical implications for Chinese policymakers,particularly in managing the challenges associated with fluctuation risks linked to high foreign exchange reserves,aiming to achieve autonomy in monetary policy and formulate effective monetary strategies to stimulate economic growth.
文摘This paper studies the relationships of the monetary policy, stock market and real investment in China based on Markov-Switching-Vector Error Correction Model. It shows that there is a cointegration relationship among the three ones. We disclose the riddle that the stock market is in recession, but the growth rate of economy is very high in recent years. We also find that Chinese economy operated stably most of the time during the past 8 years. But if the economy is difficult to continue its high growth, it is more likely to appear ＂hard landing＂ than ＂soft landing＂. The impulse response analysis indicates the asymmetry between the ＂too cold＂ economy regime and the ＂too hot＂ regime. And the economy will oscillate during the subsequent time when it is shocked under the ＂too hot＂ regime.
