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The purpose of this paper is to test whether the policies of China’s financial restraint have an inhibitory effect on the consumption of residents.
Abstract
Purpose
The purpose of this paper is to test whether the policies of China’s financial restraint have an inhibitory effect on the consumption of residents.
Design/methodology/approach
This study used the principal component analysis for constructing a financial restraint index and also used empirical methodology.
Findings
The authors found that financial restraint policies create rent opportunities for banking sector and production sector, which further creates the rent opportunities for the household sector. Such transfer of rent and redistribution will have an inhibitory effect on residents’ consumption. The financial restraint policies directly and indirectly inhibit the growth of residents’ income; and in theory, the purpose of financial restraint policy is to promote economic growth, thus promoting residents’ consumption. Thus, the financial restraint policies impacting the residents’ consumption are non-linear and test the threshold effect of financial restraints on the residents’ consumption of China.
Research limitations/implications
This paper’s theoretical contribution includes: increasing the connotation of financial restraint in the policies of stock market and foreign exchange controls, and further developing the financial restraint theory; and exploring the inhibitory effect on the consumption of residents from the perspective of financial restraints to enrich the connotation of the consumption theory.
Originality/value
The findings in this study can help the financial authorities to gradually relax the financial restraint policies to encourage residents’ consumption.
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Xiaotong Jin, Shengliang Deng and Ilan Alon
The paper aims to examine the consumption behavior of Chinese residents during economic transition. It explores whether Western theories of consumption are applicable to…
Abstract
Purpose
The paper aims to examine the consumption behavior of Chinese residents during economic transition. It explores whether Western theories of consumption are applicable to the Chinese situation, and then tests the hypothesis based on Chinese traditional culture and dynamic nature of system change.
Design/methodology/approach
The paper opted for an empirical‐based approach. A regression model was used to analyze annual consumption data from 1986 to 2008 in China.
Findings
The paper provides empirical insights and suggests that under the influence of Chinese traditional culture and dynamic change of the Chinese economic system, Chinese urban residents exhibit a special consumption pattern of an intermittent and cyclical nature.
Research limitations/implications
The paper concludes that in order to make the consumption stimulation policy in China more effective, it is necessary to establish a series of measures such as establishing a sound social welfare system as well as narrowing the gap between the rich and the poor, which will substantially increase the buying power of the less‐privileged groups and thus will increase the overall spending in the society. Although the econometric model used in this paper is adequate, a different approach like time series econometrics may give us additional insights. Researchers are encouraged to test the hypothesis further by employing other methodologies. Second, due to the lack of its own theories in the emerging market, this study remains exploratory.
Originality/value
This paper fulfils an identified need to study the special consumption behavior of Chinese urban residents during the economic transition.
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Adnan Enshassi, Salam Elzebdeh and Sherif Mohamed
The Gaza Strip in Palestine is suffering from a shortage of water and energy. To manage the current situation and address future issues, practical approaches need to be…
Abstract
Purpose
The Gaza Strip in Palestine is suffering from a shortage of water and energy. To manage the current situation and address future issues, practical approaches need to be adopted to enhance water and energy efficiency. The purpose of this paper is to elicit professionals’ perceptions of the drivers affecting water and related energy consumption in residential buildings in the Gaza Strip.
Design/methodology/approach
In total, 19 drivers were identified from previous research and modified according to the results of a pilot study. These drivers were ranked under a Relative Importance Index (RII). A questionnaire survey was then administered and non-random purposive sampling used. The population of this study comprised stakeholders, including the United Nation Refugee Work Agency, Gaza Strip Governorates Municipalities, and the Coastal Municipalities Water Utility.
Findings
The results of all drivers (i.e. RII=71.43 per cent, mean=3.57) indicated that the respondents agreed about which drivers were affecting water and energy consumption. The sign Test-value was a positive 4.55 and the p-value was 0.000 (i.e. smaller than the level of significance a=0.050). The means of these drivers differed significantly and were greater than the hypothesised value of 3. Accordingly, it was concluded that the drivers investigated significantly affected household residents’ consumption of water and energy in residential buildings. The study revealed that climate changes, knowledge of how to conserve water and energy and household size were the most important drivers affecting household residents’ consumption of water and related energy in residential buildings.
Practical implications
The study will assist the parties concerned about water and energy use to be aware and understand the drivers affecting water and related energy the consumption in order to provide household residents with the necessary knowledge to ensure conservation and sustainability. Although this study related to a narrow geographical area in Palestine, the findings could be useful to similar locations in the Middle East and Africa.
Originality/value
This research demonstrates the drivers affecting water and related energy the consumption in residential buildings in the Gaza Strip which is considered the first study in Palestine and in the region. The study provides a useful platform for the development of appropriate water and energy strategies in Palestine and other similar geographical locations in the Middle East.
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Yang Gao, Zhihao Zheng and Shida R. Henneberry
This study estimates the income elasticities of calorie, macronutrients (carbohydrate, protein and fat) and key micronutrients including cholesterol, vitamin A, vitamin C…
Abstract
Purpose
This study estimates the income elasticities of calorie, macronutrients (carbohydrate, protein and fat) and key micronutrients including cholesterol, vitamin A, vitamin C, sodium, potassium, calcium, iron, zinc and insoluble fiber separately for urban and rural adults aged 18–60, using China Health and Nutrition Survey data set from 2004 to 2011.
Design/methodology/approach
A semiparametric model, a two-way fixed-effects model and a quantile regression approach are employed to estimate nutrient–income elasticities.
Findings
The income elasticities of calorie, protein, fat, cholesterol and calcium are in the range of 0.059–0.076, 0.059–0.076, 0.090–0.112, 0.134–0.230, 0.183–0.344 and 0.058–0.105, respectively. The income elasticity of each of the other nutrients is less than 0.1. The income elasticities of calorie and the majority of nutrients included are larger for rural residents than for urban residents and for low-income groups than for medium- and high-income groups. Overall, in spite of having a relatively small impact, income growth is shown to still have an impact on improving the nutritional status of Chinese adults.
Originality/value
This study estimates nutrient–income elasticities separately for urban and rural adults, expanding the scope of the study regarding the impact of income on the nutritional status in China. Moreover, this study uses a pooled sample generated from the personal food consumption records covering foods consumed at home and away from home during 2004–2011, which is thus likely to more comprehensively reveal the causal relationship between income growth and changes in the nutritional status in China.
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Yi Sun, Chengjin Xu, Hailing Zhang and Zheng Wang
Climate change will have a significant impact on China’s potential agricultural production and change the distribution of the population in various regions of China, thus…
Abstract
Purpose
Climate change will have a significant impact on China’s potential agricultural production and change the distribution of the population in various regions of China, thus producing population migration. This paper aims to analyze China’s population migration in response to climate change and its socio-economic impact.
Design/methodology/approach
In this paper, the Potential Agriculture Production Index is introduced as an analytical tool with which to estimate the scale of the population migration induced by climate change. Also, this paper constructs a multi-regional computable general equilibrium (CGE) model and analyzes the effect of change in the population distribution pattern on regional economies, regional disparity and resident welfare.
Findings
The key finding of this paper is that, as a result of changes in potential agricultural production induced by climate change, the Circum-Bohai-Sea region, the industrialized region and the industrializing region, which are the main destination regions of the migrating population, will face a severe labor shortage. In response to population migration, the economic growth rate of the immigrating population regions has accelerated. Correspondingly, the economic growth rate of the emigrating population regions has decreased. In addition, the larger the scale of population migration is, the larger the economic impact is. Migration increases inner-regional disparity and decreases inter-regional disparity. However, overall regional disparity is only somewhat decreased.
Originality/value
This paper introduces a Potential Agriculture Production Index to estimate the scale of the population migration and introduce a multi-regional CGE model to analyze the correlated social-economic impacts.
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Zheng-Xin Wang, Ji-Min Wu, Chao-Jun Zhou and Qin Li
Seasonal fluctuation interference often affects the relational analysis of economic time series. The main purpose of this paper is to propose a new grey relational model…
Abstract
Purpose
Seasonal fluctuation interference often affects the relational analysis of economic time series. The main purpose of this paper is to propose a new grey relational model for relational analysis of seasonal time series and apply it to identify and eliminate the influence of seasonal fluctuation of retail sales of consumer goods in China.
Design/methodology/approach
First, the whole quarterly time series is divided into four groups by data grouping method. Each group only contains the time series data in the same quarter. Then, the new series of four-quarters are used to establish the grey correlation model and calculate its correlation coefficient. Finally, the correlation degree of factors in each group of data was calculated and sorted to determine its importance.
Findings
The data grouping method can effectively reflect the correlation between time series in different quarters and eliminate the influence of seasonal fluctuation.
Practical implications
In this paper, the main factors influencing the quarterly fluctuations of retail sales of consumer goods in China are explored by using the grouped grey correlation model. The results show that the main factors are different from quarter to quarter: in the first quarter, the main factors are money supply, tax and per capita disposable income of rural residents. In the second quarter are money supply, fiscal expenditure and tax. In the third quarter are money supply, fiscal expenditure and per capita disposable income of rural residents. In the fourth quarter are money supply, fiscal expenditure and tax.
Originality/value
This paper successfully realizes the application of grey relational model in quarterly time series and extends the applicable scope of grey relational model.
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