TEN YEARS OF SHANGHAI FTZ--The 10th anniversary of the Shanghai Free Trade Zone marks a new milestone in China’s reform and opening-up journey with institutional innovation at its core

Since its establishment in 2013,the Shanghai Free Trade Zone(FTZ)has consistently focused on institutional innovation,benchmarking itself against the highest standards of investment and trade systems.It has not only deeply served the national strategy of openingup but also played a constructive role in demonstrating and leading the integrated development of the Yangtze River Delta and the Belt and Road Initiative,helping accumulate experiences in bilateral and multilateral cooperation.

Augmented Appeal China is doubling down on attracting foreign investors through broader market access and improved business environment

Attracting foreign capital is a key pillar of China’s reform and opening up policy,and foreign-funded enterprises are an important component of China’s economy.Currently,China is taking steps to further boost its attractiveness as a foreign direct investment(FDI)destination in order to seek more foreign capital.

Street Stall Economy in China in the COVID-19 Era:Dilemmas and the International Experience of Promoting the Normalization of Street Stall Economy

Compared with those major policies that need to be practiced over the years,the street stall economy is more like a special means after the epidemic,resulting in a“short and brilliant”heat.Nevertheless,the street stall economy revives is facing several dilemmas.This paper reveals the dilemma of the prosperity and development of the stall economy before and after the epidemic,followed by the international experience and enlightenment of promoting the normalization of street stall economy,ranging from street vendor’s legal status and road administrative promotion to street food safety and environmental protection.To sum up,employment is the foundation of people’s livelihood and the source of wealth,hence,stall economy plays an indispensable role to create a win-win working world and promote the formation of a sustainable economic.

Urban natural gas demand and factors analysis in China:Perspectives of price and income elasticities

Urban natural gas is becoming the main sector driving China’s natural gas consumption growth in recent years.This study explores the impacts of urban natural gas price,wage,socioeconomic determinants,and meteorological conditions on urban natural gas demand in China over 2006-2017.Furthermore,this study also analyzes the potential regional heterogeneity and asymmetry in the impacts of gas price and income on China’s urban gas demand.Empirical results reveal that:(1)The increased gas price can significantly reduce the urban gas demand,and the average income level may effectively promote the gas demand,also,a strong switching effect exists between electricity and natural gas in urban China;(2)these impacts are heterogeneous in regions among China,urban natural gas demand is largely affected by the gas price in regions with high-gas-price and by income in regions with low-gas-price;and(3)the impact of gas price on urban gas consumption is consistent in regions with different urban natural gas consumption,while the impact of income is asymmetric.This study further provides several policy implications for improving the urban natural gas industry in China.

Future perspective of China's feed demand and supply during its fast transition period of food consumption

China has experienced dramatic changes in food consumption patterns over the last three decades. However, there are different opinions regarding the future trends in consumption. By adopting the well-developed partial equilibrium model-China Agricultural Policy Simulation Model（CAPSi M）, the demand for livestock products and the main feed crops over 2011–2030 is predicted and analyzed. It is found that China＇s per capita consumption of livestock products will continue to rise during this period, even though its growth rate will slow down gradually. Meanwhile, the expansion of livestock production will pose great challenges for feed supply in China. More accurately, China will be confronted with feed security rather than grain security in the future.

How did the price and income elasticities of natural gas demand in China evolve from 1999 to 2015? The role of natural gas price reform

As a cleaner,high-efficiency,and low-carbon fuel,natural gas has been an important fuel resource for China.To achieve a substantial increase in natural gas demand,China has sought to reform its natural gas pricing mechanism.Employing a set of unbalanced panel data for China’s 30 provinces covering 1999-2015,this study aims to estimate the evolving price and income elasticities of natural gas demand and explore the effect of natural gas price reform in China.For this purpose,a series of econometric techniques allowing for cross-sectional dependence and slope homogeneity is utilized.The results suggest that although natural gas demand in China still lacks negative price elasticity,the phenomenon is improving.Moreover,the estimates suggest that natural gas demand in China is indeed becoming increasingly sensitive to income changes.Our estimates also provide strong evidence in favor of the effect of natural gas price reform on the change in price elasticity as the price elasticity decreases in five of the seven regions.In addition,the results indicate large variations in the change in price and income elasticities of natural gas demand across China’s regions.Natural gas demand is becoming more price inelastic in Southwest China and Northwest China,while such demand in North China and East China responds less sensitively to income changes.These findings offer several policy suggestions for the reform of China’s natural gas market at the national and regional levels.

Review of Carbon Emissions Trading Production Model and Research on Its Applications in China

With the Kyoto Protocol entering into effect in many countries one after another,carbon trading has come into being and developed quickly.China is the main supplier of carbon emissions rights in the world,but such transactions are still in the stage of Clean Development Mechanism (CDM) projects without its own trading system,which is not conducive for China to win the rights of carbon pricing in the international market.Low-carbon and emissions reduction is the international trend nowadays,and therefore,it is particularly necessary and urgent to investigate the issue of carbon trading in China.In this paper,the authors have reviewed Putty-Clay Vintage,which is a model of production function for carbon trading,revealing the main points,contributions and shortcomings of the model.Combined with China's national conditions,the authors have investigated the application of this model in China's carbon trading from four different angles,including enterprise production optimization,financial market development,national macro-economy,and the allocation of emission quota.This study aims to provide China's enterprises with an analytical framework when participating in carbon trading in the future and it is beneficial for them to make optimal production planning when considering the cost of carbon emissions reduction.

Analyses and Suggestions on China＇s Foreign Trade Development Pattern Transformation

In coping with the global financial crisis, all levels of the Chinese government and foreign trade firms have not only created new practices but have also changed their goal from transforming the growth pattern of foreign trade to transforming the development pattern of joreign trade. China＇s experience shows that economic instruments such as Net Barter Terms of Trade （NBTT） and the smile curve theory have limitations when it comes to interpreting foreign trade. If used improperly, scientific theories often lead to.fallacies. Transjbrming the development pattern of China＇s .foreign trade requires the following changes： national income distribution, foreign trade competition, market exploration, and resource utilization. We advise that competent authorities create a reasonable and operational system of assessment indicators.

The Impact of the Establishment of National High-tech Zones on Total Factor Productivity of Chinese Enterprises

The National High-tech Zone(NHTZs)is an important strategic platform for cultivating high-tech industries and realizing high-quality economic development in China.Based on the combined data from 2006 to 2014 of the industrial enterprise database,the customs database,and the China Development Zones Audit and Announcement Catalogue(abbreviated asthe Catalogue),this paper systematically investigates the influence of the construction of NHTZs on enterprise’s total factor productivity(TFP).Results show that NHTZs have a positive impact on the TFP of enterprises in the zone,and this conclusion is still valid after considering endogeneity problems.Furthermore,the above productivity effects of NHTZs are heterogeneous in terms of enterprise ownership,external environment and establishment time,and NHTZs have greater stimulation effects on enterprise productivity after comparing with other types of functional zones.An investigation of the specific mechanisms at play shows that NHTZs promote the TFP of enterprises in the zone through the release of preferential policies,strengthening the“technology spillover effects”of imported intermediate goods,enhancing enterprise’s innovation ability and attracting talent.In addition,based on the decomposition of industry productivity,this paper also investigates the impact of NHTZs on changes in industry productivity and finds that NHTZs promote the overall productivity of specific industries mainly by stimulating the productivity improvement of incumbent enterprises and expanding the market share of high-productivity enterprises.Moreover,the preferential policies of NHTZs do not significantly stimulate high-productivity enterprises to enter the zones,nor do they cause low-productivity enterprises to exit.This research is helpful in objectively evaluating the economic effects of the NHTZs in China and in providing a theoretical basis for its further adjustment.

Benefits of Integration Regional coordination creates a win-win situation for those at home and abroad

One notable feature of China’s growth since the late 1970 s is that certain regional pinpoints often take the lead in carving out a new path for development before creating a lane for others to catch up;the end goal being that of synchronized growth.Throughout the last four decades,the country has passed through three stages.

Factors Affecting the Ratio of Service Industry in GDP： A Comparative Analysis of China, Japan, and South Korea

Based on the input-output model and using a demand side approach, this paper surveys how factors such as consumption, investment, net export, intermediate input and price affect the ratio of China＇s service industry as compared with Japan and South Korea. An analysis of China＇s data indicates that price and residential consumption structure are key contributing factors to the rising ratio of the service industry. Conversely, intermediate input and government consumption are factors that lead to a decrease in the ratio of the service industry. An analysis of Japan and South Korea shows that price and residential consumption structures were linked to the rises in their service industry. This paper concludes that the ratio of China＇s service industry to gross domestic product （GDP） will continue to rise over the 12th Five-Year Plan period （2011-2015） and beyond.

Spatial Structure of Peer Networks and Academic Achievement Based on a Random Control Trial Experiment

This paper investigates whether changing the seating arrangement in a classroom can facilitate positive spillovers from top-performing students to others,using a field experiment conducted in a Chinese high school.Among study groups with balanced abilities,the treatment altered the spatial distribution by assigning the two top students to seats in the spatial center of each group.In the reference groups where students were allowed to choose their own seating arrangements,the lowest performing were significantly less likely to sit next to a top student than they would be under a random assignment.The results suggest that,in the treated groups,there could be enhanced academic spillovers from the top students.The treatment especially benefited the two lowest performing students in science subjects.In contrast,the treatment exerted negative effects on the test scores of the two middle-performing students,due to a disruption mechanism.The results suggest that the spatial layout of a peer network can have a significant impact on learning outcomes.

CO2 emission driving forces and corresponding mitigation strategies under low-carbon economy mode:evidence from China's Beijing-Tianjin-Hebei region

On account of the background of China's "new normal" characterized by slower economic growth, this paper analyses the low-carbon economy status quo in the Beijing-Tianjin-Hebei region and empirically investigates the relationship between carbon dioxide(CO_2) emissions and its various factors for China's Beijing-Tianjin-Hebei region using panel data econometric technique. We find evidence of existence of Environmental Kuznets Curve. Results also show that economic scale, industrial structure, and urbanization rate are crucial factors to promote CO_2emissions. However, technological progress, especially the domestic independent research and development, plays a key role in C0_2 emissions abatement. Next, we further analyze the correlation between each subregion and various factors according to Grey Relation Analysis. Thereby,our findings provide important implications for policymakers in air pollution control and C0_2 emissions reduction for this region.

China-U.S. Trade Balance from the National Income Perspective

This paper calculates the China-U.S. trade balance from the national income perspective based on an input-output model that differentiates domestic and foreign-invested companies. The result shows that due to different degrees of dependence of both countries on foreign production factors such as foreign capital for the manufacturing of export goods,only 87.7% of the domestic value-added created by China's exports to the U.S. in 2012 was China's national income, whereas 96.2% of value-added in U.S. exports to China was U.S.national income. In the comparison of total export volume and export value-added, the home country's national income created by exports can more realistically reflect a country's gains from trade. In 2012, China's trade surplus with the U.S. stood at 102.8 billion US dollars in national income terms, which is 61% and 22% smaller than the results in gross and value-added terms, respectively. The implication is that the traditional trade balance accounting method seriously exaggerates the China-U.S. trade imbalance.

ASYMPTOTICS OF THE SOLUTIONS TO STOCHASTIC WAVE EQUATIONS DRIVEN BY A NON-GAUSSIAN LéVY PROCESS

In this article, we consider the long time behavior of the solutions to stochastic wave equations driven by a non-Gaussian Lévy process. We shall prove that under some appropriate conditions, the exponential stability of the solutions holds. Finally, we give two examples to illustrate our results.

Measuring the Intraday Jump Tail Risk of Financial Asset Price with Noisy High Frequency Data

This paper proposes a simple two-step nonparametric procedure to estimate the intraday jump tail and measure the jump tail risk in asset price with noisy high frequency data. We first propose the pre-averaging threshold approach to estimate the intraday jumps occurred, and then use the peaks-over-threshold (POT) method and generalized Pareto distribution (GPD) to model the intraday jump tail and further measure the jump tail risk. Finally, an empirical example further demonstrates the power of the proposed method to measure the jump tail risk under the effect of microstructure noise.

Impact of Electricity Shortages on Productivity: Evidence from Manufacturing Industries

Electricity shortages present a significant constraint on manufacturers,who rely on electricity as an important input into production.In China,electricity supply has been growing rapidly.However,the rapid industrialization sometimes makes the power supply still unable to meet the demand.Using a survey of 1673 Chinese manufacturing firms,this paper explores how firms response to electricity shortages and its impact on productivity.We find that self-generation of electricity and investment in Research and Development(R&D)have significant positive relationships with electricity shortages.Further investigations reveal that self-generation is the most common way to deal with electricity shortages.However,it aggravates productivity loss.Though investment in Research and Development can promote productivity,it cannot offset the negative impact of electricity shortages on productivity.Analyses on subsamples show heterogeneity in the impacts of electricity shortages across firms.In particular,large firms are more inclined to invest in R&D than small and medium-sized firms are.They are also the one who suffer significant productivity loss due to self-generation of electricity.Though it is possible for medium-sized firms to reduce productivity loss through R&D,they are not likely to invest in R&D as a response to electricity shortages.This study illustrates that firms can hardly have effective solutions to electricity shortages,and policy makers should take great efforts to increase electricity supply.

GVC Evolutions: New Trends and China’s Policy Response

In today’s digital economy,new technologies such as artificial intelligence,big data,and the internet of things(IoT)have stronger influence on global value chains(GVCs).As GVCs overcome physical boundaries,the space economy is becoming a new agent of growth.Developed countries dominate the rules of regional trade agreements,leading to endogenous restructuring in GVCs.In multi-tiered GVCs,certain countries garner a large portion of value-added.With the new trend in GVCs in mind,China should consolidate its strengths in the digital economy as new growth agents replace old ones,gain a favorable position in the space economy with the Chinese space station,create a global trading network through the Belt and Road Initiative(BRI),and acquire more value-added by capitalizing on the sophisticated global value chain.

Global Risk Appetite,US Economic Policy Uncertainties and Cross-Border Capital Flow

Based on the global asset portfolio model,this paper created a panel threshold model using EPFR fund data to empirically test the non-linear spillover effects of US economic policy uncertainties on cross-border capital flow for emerging economies.Our study led to the following findings:(1)When the level of global investor risk tolerance is high,rising US EPU will induce a capital inflow into emerging economies,as manifested in the“portfolio rebalancing effect.”When the level of global investor risk tolerance is below a critical threshold,this gives rise to risk aversion and emerging economies will experience net capital outflow,i.e.the“flight to quality effect”.(2)Equity fund investors have a lower risk tolerance threshold than bond fund investors.(3)According to our heterogeneity analysis,more attention should be paid to monitoring capital flow through actively managed funds,ETF funds,and retail investor funds.The economy should increase financial efficiency and economic resiliency to mitigate capital outflow pressures from the external environment.

Dynamics of a Hyperparasitic System with Prolonged Diapause for Host

A hyperparasitic system with prolonged diapause for host is investigated. It is assumed that host prolonged diapause occur at larval stage, and parasitoid attack is limited to egg stage before the initiation of host diapause. Such behavior has been reported for many ichneumons. Hyperparasite only attacks the parasitoids that parasitize the hosts. Hyperparasitic system is often used in biological control. The existence and stability of nonnegative fixed points are explored. Numerical simulations are carried out to explore the global dynamics of the system, which demonstrate appropriate prolonged diapause rate and appropriate intrinsic growth rate can stabilize the system. The reasons are explained according to the ecological perspective. Furthermore, many other complexities which include quasi-periodicity, period-doubling bifurcations leading to chaos, chaotic attractor, intermittent and supertransients are observed.