JOURNALOFZHONGNANUNIVERSITYOFECONOMICSANDLAW

No.6.Nov. 15，2019

HIGHLIGHTS

EconomicDevelopmentandPovertyAlleviationoverthe70YearsHistory
sincetheFoundingofthePeople’sRepublicofChina

YAO Shujie1,2,3WANG Jiefei1

·3·

(1.SchoolofEconomicsandBusinessAdministration,ChongqingUniversity,Chongqing400000,China;
2.CollegeofEconomicandManagement,SouthChinaAgriculturalUniversity,GuangzhouGuangdong510642,China;
3.UniversityofNottinghamNingbo,NingboZhejiang315000,China)

Abstract:Over the seventy years after the founding of the People’s Republic of China, especially in the past 40 years of economic reform and opening up, China has transformed itself from a poor and backward agrarian country to the world’s second largest economy, creating the greatest miracle of economic development and poverty alleviation in the world modern history. This paper reviews the achievements and development experiences of China over the last 70 years, particularly the past four decades of economic reform and opening up. It also analyzes the causes and current situation of unbalanced regional development and urban-rural divide which are key deterrents to China’s poverty alleviation efforts. It discusses the policies and institutional arrangements of poverty alleviation in various stages of economic development. In particular, it analyzes the scientific and innovative nature of Xi Jinping’s targeted poverty alleviation strategies from the perspectives of poverty and inequality measurement, “two no worries, three guarantees”, poverty registration, poverty management mechanism, “aspiration” and “wisdom” relating to poverty alleviation. It is concluded that economic growth, unbalanced development and poverty form a triangular relationship. While economic growth promotes poverty alleviation, it may also result in uneven regional development and urban-rural divide, offsetting the positive effect of economic growth on poverty reduction. This paper suggests that targeted poverty alleviation in the new era is undoubtedly the most important institutional arrangement to achieve an all-round well-off society and the most scientific path for all people to share the fruits of economic development.

Keywords:Economic Development; Regional Inequality; Poverty Governance; Targeted Poverty Alleviation

ThePractice,OriginandScientificSystemofthe70YearsofOpenWorldEconomy

QIAN Xuefeng

·17·

(SchoolofBusinessAdministration,ZhongnanUniversityofEconomicsandLaw,Wuhan430073,China)

Abstract:In the 70 years since the founding of the People’s Republic of China, in the long-term practice of opening up to the outside world, it has gradually formed an open economic system, presenting a clear history of open economic development. Facing the threats of trade protectionism, unilateralism and hegemonism, China has put forward the idea of building an open world economy with equality, justice, balance and harmony, and win-win cooperation. The open world economy is a higher level of open economy, which is unified in the Marxist open concept. This paper first reviews the historical evolution of China's open world economic exploration, and then reviews the core connotation, advancement and scientificity of Marxist open concept. The open world economy is based on China's great practice of opening to the outside world and achieves the innovative development of Marxist open concept in thought and action. Its position, purpose and mode are essentially different from the open economy of Western capitalist countries in history. Starting from the practice of open economic development since the founding of the People's Republic of China in the past 70 years, we should adhere to scientific theoretical basis, scientific theoretical connotation, scientific research paradigm and scientific research methods in constructing the scientific system of open world economy in the new era. Based on the scientific system and China's practice, we should do a good job in China's economic research, tell Chinese stories, make Chinese voices, and promote China's open economy to a new stage of high-quality development, which contribute to China's forces for the common development of the global economy.

Keywords:Open World Economy; Open Economy; Marxism Open Perspective

ReflectionsonRelationshipbetweenGovernmentandMarket

YANG Canming

·26·

(SchoolofPublicFinanceandTaxation,ZhongnanUniversityofEconomicsandLaw,Wuhan430073,China)

Abstract:The relationship between the government and market is an important basic theoretical issue faced by various schools of economics. It is also an important practical problem concerning the boundaries and scales of policies. Under the new historical background, we need to reorganize and think about the relationship between the visible hand and the invisible hand from multiple perspectives based on practice. These perspectives include: China's development experience, economic globalization and current global trade pattern, market effectiveness, the relationship between war and peace and income distribution and human-oriented philosophy. The core issue of perfecting the socialist market economic system and developing a modernized economy is to handle the relationship between the government and the market, and make the market play a decisive role in resource allocation and the government play its role better.

Keywords:Government and Market; Trade Protectionism; Resource Allocation; Income Distribution; People-oriented

DoesDeviantStrategyAffectEnterpriseTaxRadicalization？
AnInspectionBasedonBook-TaxDifference

PAN Jun1,2WANG Yaxing3

·52·

(1.SchoolofBusiness,RenminUniversityofChina,Beijing100872,China; 2.SchoolofAccounting,
NanjingAuditUniversity,Nanjing211815,China;3.BeijingNationalAccountingInstitute,Beijing101312,China)

Abstract:This paper takes A-share listed companies from 2008 to 2016 as research samples to study the influence of strategic difference degree on corporate tax radicalization. The empirical results show that companies which adopt strategy deviating from the traditional industry strategy will take more aggressive tax avoidance behavior. Further research shows that when the pressure on corporate performance is high, the transparency of information is low and the supervisory effect of major shareholders is weak, the positive correlation between the degree of corporate strategic difference and the degree of tax radicalization is strengthened. In addition, this paper studies the direction of the degree of strategic difference, and the results show that the positive degree of strategic difference can significantly increase the degree of enterprise tax radicalization.It not only enriches the research literature on strategic positioning and tax avoidance behavior, but also provides useful reference for stakeholders to supervise the companies with unconventional strategies.

Keywords:Strategy Deviation；Tax Radicalization；Book-Tax Difference; Information Transparency；Large Shareholder’s Supervision; Earnings Management

CanManagerialOverseasExperienceReduceExchangeRateRisk?

LIU Jihong

·61·

(SchoolofAccounting,ZhongnanUniversityofEconomicsandLaw,Wuhan430073,China)

Abstract:This paper investigates the effect of managerial overseas experience on exchange rate risk management and its inherent mechanism. Our empirical evidence demonstrates that managerial overseas experience can help China’s listed companies effectively reduce the exchange rate risk. Further tests reveal that operational hedging, financial hedging, earnings smoothing, and improving corporate governance are introduced to manage exchange rate risk. The results still hold with alternative measures of exchange rate risk and managerial overseas experience, and they are also robust after controlling for self-selection bias and using propensity score matching approach to address endogeneity concerns. The findings of this paper provide some implications on firms’ management of exchange rate risk and the construction of executive team in emerging markets where external governance is relatively weak.

Keywords:Managerial Overseas Experience; Exchange Rate Risk; Experience Hedging; Financial Hedging; Earnings Smoothing; Corporate Governance

AStudyofRMBExchangeRateFormationMechanismBasedonGARCHModel

YANG Tianjie1DENG Fuhua2

·113·

(1.SchoolofFinance,SouthwesternUniversityofFinanceandEconomics，Chengdu611130，China；
2.SchoolofInternationalBusiness，SouthwesternUniversityofFinanceandEconomics，Chengdu611130，China)

Abstract:Based on extended GARCH model, this paper explores the role of RMB central parity formation mechanism, macroeconomic fundamentals and central bank's regulation on the change and volatility of RMB central parity. The results show that the onshore and offshore RMB exchange rates, CFETS index and countercyclical factors have significant impacts on the change and volatility of the central parity. On macroeconomic fundamentals, the rising inflation and narrowing interest margins between China and the United States both exacerbate the change of RMB central parity, while the continued recovery of foreign exchange reserves and the expansion of trade surplus support the central parity effectively. But the impact of central bank's regulation on the RMB central parity is limited. In addition, there is no asymmetric effect of CFETS index, US dollar index and VIX index on the RMB central parity. Thus, the purpose of the currency policy adjustment on August 11 of 2015 is to enhance exchange rate flexibility, not to depreciate the RMB exchange rate to boost China's economy.

Keywords:RMB Exchange Rates；Central Parity Rate；Economic Fundamentals；GARCH Model