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1 – 2 of 2Zhan Wang, Xiangzheng Deng and Gang Liu
The purpose of this paper is to show that the environmental income drives economic growth of a large open country.
Abstract
Purpose
The purpose of this paper is to show that the environmental income drives economic growth of a large open country.
Design/methodology/approach
The authors detect that the relative environmental income has double effect of “conspicuous consumption” on the international renewable resource stock changes when a new social norm shapes to environmental-friendly behaviors by using normal macroeconomic approaches.
Findings
Every unit of extra demand for renewable resource consumption increases the net premium of domestic capital asset. Even if the technology spillovers are inefficient to the substitution of capital to labor force in a real business cycle, the relative income with scale effect increases drives savings to investment. In this case, the renewable resource consumption promotes both the reproduction to a higher level and saving the potential cost of environmental improvement. Even if without scale effects, the loss of technology inefficient can be compensated by net positive consumption externality for economic growth in a sustainable manner.
Research limitations/implications
It implies how to earn the environment income determines the future pathway of China’s rural conversion to the era of eco-urbanization.
Originality/value
We test the tax incidence to demonstrate an experimental taxation for environmental improvement ultimately burdens on international consumption side.
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Keywords
Minggao Shen, Jikun Huang, Linxiu Zhang and Scott Rozelle
This paper seeks to understand the evolution of financial intermediation in the course of China's economic transition.
Abstract
Purpose
This paper seeks to understand the evolution of financial intermediation in the course of China's economic transition.
Design/methodology/approach
The research is based on a unique data set collected by the authors and other collaborators from a 1998 survey of financial institutions, enterprises, and government officials in southern China.
Findings
Based on an empirical investigation of rural financial reforms, it is argued that China's two‐decade long financial reform was a gradual process that accommodates reforms in other sectors and responds to changing policy goals and the economic and institutional environment in which financial institutions operate. Although using standard measures of financial system performance may cast doubt on the effectiveness of China's rural banking system, when one understands the different roles that it has been asked to play, it can be argued that it has not operated so poorly.
Research limitations/implications
In conclusion, it is found that China's rural economic environment is still changing. If the system continues to change in the future, responding to pressures in the economy, further financial reforms will almost certainly emerge in the coming years.
Practical implications
These findings, although primarily from the 1980s and 1990s, are still helpful in understanding the reform process that is currently ongoing.
Social implications
This paper will help readers make sense of agricultural financial reforms and will allow for more discourse over what has been accomplished and what still is needed.
Originality/value
This is the first manuscript to comprehensively put China's rural financial reforms into the context of modern economic analysis, explaining why China's government proceeded as they did and why the reforms have unfolded in such a stop and start manner.
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