Growth Mechanisms and Sustainable Development of the Chinese Economy: Comparison with Japanese Experiences

Preface
Contents
Notes on Contributors
Abbreviations
List of Figures
List of Tables
1 Introduction
1.1 Background and Purpose of This Book
1.1.1 Background of This Book
1.1.2 Purpose of This Book
1.2 Main Content of This Book
1.3 Significance and Contributions of This Book
Notes
References
Part I Mechanisms of Economic Growth and Development
2 Chinese and Japanese Development Process Compared: Economic and Politico-Economic Perspectives
2.1 Introduction
2.2 Comparison of Development Processes
2.3 Several Particularities of China’s Economic Development Policies and Institutions
2.3.1 One-Child Policy
2.3.2 Agricultural Collectivization and People’s Communes
2.3.3 Township and Village Enterprises (TVEs)
2.3.4 State-Owned Enterprises (SOEs)
2.3.5 Special Economic Zones (SEZs)
2.4 Two Special Topics of Development Economics
2.4.1 Flying Geese Pattern of Economic Development
2.4.2 Lewisian Turning Point
2.5 Behind China’s Development Characteristics: Politics in Command
2.5.1 Rural–Urban Divide: Two Types
2.5.2 Developmentalism
2.6 Conclusions
Notes
References
3 Trade, FDI, and Economic Growth
3.1 Introduction
3.2 Analysis Perspective and Target
3.3 Catch-Up Stage: Earning Foreign Exchange and Increasing Surplus of Current Account Balance
3.3.1 Japan: Overcoming the Constraint of the Balance of Payments and Utilizing Industrial Heritage in Prewar Period
3.3.2 China: Opening to the Outside World and Market Transition
3.3.3 Comparison: Differences in Initial Conditions and Use of Foreign Capital
3.4 Grow-Up Stage: Coping with Excessive Savings and External Imbalances
3.4.1 Japan: Export-Led Growth and Trade Frictions with the United States
3.4.2 China: U.S.–China Trade Imbalance and Competition for Technological Supremacy
3.4.3 Comparison: Trade Frictions with the U.S. and Differences in Responses to Market and Non-Market Economies
3.5 A Comparison of China and Japan: The Benefits of Globalization and Global Governance
Notes
References
4 Digital China: Policy Initiatives, Progress, and Challenges
4.1 Introduction
4.2 Digitalization in China
4.2.1 Rise of China’s Digital Economy and Policy Initiatives
4.2.2 Level of Digital Usage in China
4.3 Impact of Digital China
4.3.1 The Future of Work in China
4.3.2 Amazon Effect in China
4.3.3 Digital Belt and Road
4.4 Conclusions
Notes
References
5 Agricultural Development in China: Comparison with Japanese Experience
5.1 Introduction
5.2 Brief History of Agricultural Development in China
5.2.1 Chinese Agriculture from an International Perspective
5.2.2 Agriculture in the Socialist Era
5.2.3 Agriculture Under the Reform and Opening-Up Policy
5.2.4 Changes in Agriculture with Rapid Economic Development Since 2000
5.3 Comparison with Experiences in Japan
5.3.1 Development Path of Agriculture in General
5.3.2 Experiences of Structural Adjustment in Japan
5.3.3 Agricultural Policy Cycle
5.4 Conclusions
Notes
References
6 Financial Development Post-World War II in Japan: Insights for China
6.1 Introduction
6.2 Financial Development in the High Economic Growth Era (Hge) (1955–1975)
6.2.1 Three Major Political-Economic Reformations Before High Economic Growth
6.2.2 Banking and Educational Reformations After World War II
6.2.3 Financial Development in the High Economic Growth Era
6.2.4 Government Financial Institutions and Long-Term Credit Banks
6.2.5 Economic and Financial Policies During the HGE
6.3 Financial Prosperity in the Bubble Economy
6.3.1 Roads to the Bubble Economy in the 1980s
6.3.2 Process of the Bubble Economy from 1985 to 1990
6.3.3 Analysis of the Stock and the Real Estate Markets in the Bubble Economy
6.3.4 Tobin’s Theory and the Bubble Economy
6.4 Financial Restructuring After the Bubble Burst
6.4.1 The Greatest Depression After the Bubble Burst in the Japanese Economy
6.4.2 Retrospective View of Past Restructuring of the Banking System
6.4.3 Restructure of Banking System in Heisei Depression
6.4.4 Consequence of the Write-Off of Non-Performing Loans in Recent Restructure of Banking
6.5 Changing Structure of Flow of Funds Account in Twenty-First Century
6.5.1 Structural Change of the Financial System
6.5.2 Stagnation of Financial Development in the Declining Economic Growth
6.6 The China Story
6.6.1 The Banking System and “the Great Wall of Debt”
6.6.2 The Real Estate Bubble
6.7 Conclusions
Notes
References
7 Human Capital Agglomeration Effect and Regional Disparity in China
7.1 Introduction
7.2 Income Inequality Between Regions in China Since the 1990s and Relevant Factors
7.3 Empirical Model
7.3.1 Basic Model
7.3.2 Barro Regression with Human Capital Agglomeration Effect
7.4 Data and Estimation Results
7.4.1 Data
7.4.2 Estimation Results
7.5 A Comparison with China and Japan During High Economic Growth Era
7.5.1 Population Migration and Income Inequality in Japan
7.5.2 Population Migration and Income Inequality in China
7.6 Conclusions and Future Issues
Appendix
The Solow–Swan Model with Human Capital Agglomeration Effect
Notes
References
8 Environmental Policies and Water Resource Management
8.1 Introduction
8.2 Research Background
8.2.1 Water Environmental Problem in China
8.2.2 Environmental Policy in Rapid Economic Growth Era
8.2.2.1 Japan
8.2.2.2 China
8.3 Case Study
8.3.1 Qualitative Control
8.3.2 Quantitative Control
8.3.2.1 Water Right Transfer Among Sectors
8.3.2.2 Participatory Irrigation Management (PIM)
8.3.3 Conclusions: Policy Implication
Notes
References
9 Dual Economic Structure, Surplus Labour and Rural-Urban Migration
9.1 Introduction
9.2 Surplus Labor and the Lewisian Turning Point in China and Japan
9.2.1 Agricultural Surplus Labor in China and Japan
9.2.2 Change in Wage Differentials in China and Japan
9.3 Wage Differentials Between Migrant and Local Urban Workers in China
9.3.1 Background
9.3.2 Literature Review on Wage Differentials Between Migrant and Local Urban Workers
9.3.3 Methodology
9.3.3.1 Model
9.3.3.2 Data
9.3.4 Results
9.3.4.1 Results Based on Descriptive Statistics
9.3.4.2 Decomposition Results of the Wage Differentials Between Migrant and Local Urban Workers
9.4 Conclusions
Appendix
Notes
References
Part II Mechanisms of Behaviors of Corporates, Households and Individuals
10 Household Consumption and Manufactural Industrial Upgrading
10.1 Introduction
10.2 Data and Matching Process
10.2.1 Data
10.2.2 Matching Process
10.3 Model and Variables
10.3.1 Model
10.3.2 Descriptive Statistics
10.4 Resultss
10.4.1 Baseline Results
10.4.2 Extended Results on the Demand Mechanism for Industrial Upgrading
10.4.2.1 Profit Drive Mechanism Test
10.4.2.2 Export Drive Mechanism Test
10.4.2.3 Private Sector—Mechanism Tests
10.5 Conclusions
Appendix
Note
References
11 Enterprise Ownership Reform and Wage Gaps Between Public and Private Sectors
11.1 Introduction
11.2 Institutional Background: State-owned Enterprises Reforms and Changes of Wage Policy in China
11.2.1 Wage Policy Reform in the 1980s
11.2.2 Wage Policy Reform in the 1990s
11.2.3 Wage Policy Reform in the 2000s
11.3 Methodology
11.3.1 Models
11.3.2 Data
11.4 Results
11.4.1 Results of Descriptive Statistics
11.4.2 Determinants of the Probability of Working in Public Sector
11.4.3 Wage Gaps Between Public and Private Sectors
11.4.4 Wage Structure in Public and Private Sectors
11.4.5 Decomposition Results of Wage Gaps Between Public and Private Sectors
11.5 Conclusions
Notes
References
12 Communist Party of China Membership and Wage Gaps Between Party Members and Non-members
12.1 Introduction
12.2 Background: The CPC in Chinese Companies
12.2.1 The CPC Organization in China
12.2.2 The Role of the CPC in Chinese Companies
12.3 Literature Review
12.4 Methodology and Data
12.4.1 Models
12.4.2 Data and Variables
12.5 Results
12.5.1 The Determinants of Participation in CPC Organizations
12.5.2 The Wage Premium of CPC Membership
12.5.3 Decomposition Results of the Wage Gap Between CPC Members and Nonmembers Based on Blinder-Oaxaca Decomposition Model
12.5.4 Decomposition Results of the Wage Gap Between CPC Members and Nonmembers Based on Oaxaca-Ransom Decomposition Model
12.6 Conclusions
Appendix
Notes
References
13 Trends of Labor Union Effect on Wage
13.1 Introduction
13.2 Labor Union System in China and Japan
13.2.1 History of Labor Unions in China
13.2.2 Disparity of Labor Union Systems Worldwide and Features of Chinese Labor Union
13.3 Literature Review
13.4 Methodology: Data and Model
13.5 Results
13.5.1 Descriptive Statistics in China and Japan
13.5.2 Union Effect on Wages in China and Japan
13.5.3 Trend of Union Effect on Wage in China and Japan
13.6 Conclusion
Notes
References
14 Employment Equality Policy and Gender Gap in Labor Market
14.1 Introduction
14.2 Female Employment Promotion Policies in China and Japan
14.2.1 Female Employment Promotion Policy in China
14.2.2 Female Employment Promotion Policy in Japan
14.2.2.1 Policies to Prohibit Sexism and Support Positive Employment Actions
14.2.2.2 Childcare Leave System and Work-Life Balance Policy
14.2.2.3 Policies for Part-Time Workers
14.3 Gender Gap in Chinese and Japanese Labor Markets
14.3.1 Gender Gap in China
14.3.2 Gender Gap in Japan
14.4 Empirical Studies on Gender Wage Gap in China and Japan
14.4.1 Decomposition Methods of Gender Wage Gap
14.4.2 Empirical Study for China
14.4.3 Empirical Study for Japan
14.5 Conclusions
Notes
References
15 Public Pension Policy Reform and Labor Force Participation
15.1 Introduction
15.2 Public Pensions in China and Japan
15.3 Literature Review
15.3.1 Channels Exploring the Impact of Public Pensions on Labor Force Participation
15.3.2 Empirical Studies on the Impact of Pension on Labor Force Participation
15.3.3 Contributions of the Study
15.4 Methodology and Data
15.4.1 Model
15.4.2 Data
15.5 Results
15.5.1 The Impact of the NRPS on Labor Force Participation in China
15.5.2 The Impact of Pensions on Labor Force Participation in Japan
15.6 Conclusions
Appendix
Introduction of the NRPS in China
Calculation for the Full Amount of Employees’ Pension Benefits for Japan
Notes
References
16 Bequest Motives and Saving Rate of Elderly Households
16.1 Introduction
16.2 Literature Review
16.3 Model and Variables
16.3.1 Model
16.3.2 Data Source and Variables
16.4 Estimation Results
16.4.1 Benchmark Regression
16.4.2 Instrumental Variable Estimation
16.4.3 Propensity Score Matching Estimation Result
16.5 Further Analysis
16.5.1 The Influence of Bequest Motives on the Saving Rate of Urban and Rural Elderly Households
16.5.2 Influence of Bequest Motives on the Saving Rate of Elderly Households with Different Wealth Levels
16.5.3 The Influence of Bequest Motives on the Saving Rate of Elderly Households with Different Children’s Living Conditions
16.6 Robustness Check
16.6.1 The Sample Robustness Test
16.6.2 The Robustness Test of the Estimation Method
16.7 Conclusions
Notes
References
17 Income Inequality and Subjective Well-Being
17.1 Introduction
17.2 Literature Review
17.2.1 The Channels of Effects of Absolute and Relative Incomes on SWB
17.2.2 The Results of Empirical Studies on Absolute and Relative Incomes for China and Japan
17.3 Methodology and Data
17.3.1 Model
17.3.2 Data
17.3.3 Variable Setting
17.4 Results
17.4.1 Results Using Cross-Sectional Data for China
17.4.2 Results Using Longitudinal Data for China
17.4.3 Results by Heterogenous Group for China
17.4.4 Results of Robustness Checks for China
17.4.5 Studies Comparing China and Japan
17.5 Conclusions
Notes
References
Index