Volume 10, Issue 4

This paper focuses on the impacts and effects of China’s growth of the three industries and price structural change on the real GDP growth rate. First of all, it presents a new accounting method for decomposing growth rates on the basis of existing accounting method for decomposing growth rates. By using this method, we can identify the impacts and effects of structural changes on the growth rate. The paper uses a new decomposition method to recalculate China’s industry-based real GDP growth rates between 1952 and 2019, focuses on the driving effect of growth of the three industries on the real GDP growth, and the impacts of price structural change on GDP growth rate and the contributin of the growth of the three industries on GDP growth rate. By analysis, this paper shows that between 1952 and 2019 China’s economic growth was mainly driven by the secondary industry, which had contributed to the economic growth by over 50%, the role of the tertiary industry in driving economic growth rose, but that of the secondary industry declined over the time; in the short run, the overall effect of the price structural changes of the three industries has a little impact on the economic growth, but the price change of each industry has strong effects, and the price structural change has significantly changed the effect of the growth of the three industries on the real economic growth; in the long term, the price structural change plays a relatively big hindering effect on economic growth due to the Baumol’s cost disease.

This paper uses the data from the post-1994 tax reform in China to investigate the vertical and spatial structures of sub-provincial fiscal expenditure decentralization (SPFED) in China. The study shows that, on the whole, SPFED tends to be gradually biased toward the county level, but inter-provincial differences are obvious, and the provincial centralization is more obvious in less economically developed regions. In terms of expenditure items, the province level enjoys a relatively higher level of economic expenditure decentralization (EED), and the county level enjoys a higher level of social expenditure decentralization (SED). In terms of internal structure, the difference in the level of EED shared by the province, prefecture and county levels is relatively smaller and the difference in the level of SED is relatively larger. In terms of spatial structure, in less developed regions, the province level enjoys a higher EED but a lower SED; in developed regions, the prefecture and county levels enjoy a higher EED but the prefecture level enjoys a relatively lower SED. These findings can provide empirical evidence for the reform of the division of power and expenditure responsibility, as well as the governance of sub-provincial governments.

This paper empirically demonstrates a significant correlation between rural collective economic development, farmers’ income and urban-rural relative income gap. With 2009–2018 descriptive statistics on growth characteristics and regional development of rural collective economy in China, the regional disparity, source structure and development profile of collective economic income are measured, and an analysis on the spatial convergence of rural collective economy is conducted from multiple dimensions. It finds that: Firstly, while China witnesses rural collective economic income rapidly grows, regional disparities have been failing to be moderated. Secondly, rural collective economic income gap in China has not significantly narrowed over a decade. It is mainly due to the inter-group differences in geographical locations. The income gap is further widening in the eastern region and shrinking in the central and western regions. Thirdly, capital accumulation prominently contributes to the convergence of collective economy in the eastern region, while technical indicators such as information computerization play significant role to the convergence of other regions. From rate and period of convergence, it takes about 22—30 years for backward provinces to catch up with leading provinces. After variables, such as capital accumulation and information computerization, are controlled, the period of convergence shortens to 20—24 years. Fourthly, rural collective economic income in China has already showed a spatial club convergence of low-level equilibrium trap.

In different economic periods, if the government blindly adopts expansionary fiscal policy, it may not be able to effectively increase total factor productivity (TFP). Based on this, this paper constructs a factor augmented vector autoregressive model with time-varying parameters and stochastic volatility (SV-TVP-FAVAR), and explores the nonlinear shock effect of China’s fiscal policy on TFP from the dual perspective of aggregate and structure. The study finds that: (1) At the aggregate level, the increase in fiscal expenditure in each period has a significant inhibitory effect on TFP, while the increase in fiscal revenue has a significant promotion effect on TFP; (2) At the structural level of expenditure, in the period of economic depression and high economic growth, the increase in investment expenditure, education expenditure, technology expenditure, and public service expenditure all have a strong incentive effect on TFP, but the increase in science and technology and education expenditure in the period of economic stability has not effectively improved TFP; (3) At the structural level of tax, the increase in commodity tax, including consumption tax, value-added tax, and tariff, and individual income tax will significantly inhibit the increase in TFP, but the increase in corporate income tax can significantly increase TFP. Therefore, under the new economic normal, policy makers should build a two-wheel driven fiscal policy of “aggregate regulation and structural optimization” to optimize the structure of fiscal expenditure and taxation, and promote high-quality economic development.

The Internet penetration rate rises sharply in recent years in China. This change has had a significant impact on residents’ income. By using Chinese General Social Survey (CGSS) data set, this paper investigates whether residents who use the Internet earn a higher income than similar residents who do not use the Internet by using propensity score matching. The results show that there is a premium associated with Internet use. Estimates suggest that a premium for residents who use the Internet is around twice as much for residents who do not use the Internet. Additionally, this paper finds that the inlome differences between using the Internet and not using the Internet for groups of middle-aged and elderly resident and agricultural household registration residents are more significant. Based on the research results, several relevant policy implications are presented to improve resident’s income.

Tourism is increasingly prominent for economic and social development, both as a strategic pillar industry of national economy and as a modern service industry that satisfies people’s aspirations for a better life. This paper probes into tourism development and opening up from the perspective of the new development pattern with dual circulation, which is of practical implications for the tourism development. Balancedly developing domestic and inbound and outbound tourism—accelerating domestic tourism, expanding inbound tourism, and regulating outbound tourism—is an important way for tourism integrating into the new development pattern. For this point, it is essential to fully play the decisive role of market mechanisms and better play the regulatory role of the government. Multiple measures should be taken for the rapid, high-quality and sustainable development of tourism and for the mutual promotion of domestic and international tourism, so as to lay the foundation for making China to be a world tourism power.