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Precise multi-scenario projections of future economic outputs based on localised interpretations of global scenarios and major growth drivers are important for understanding long-term economic changes. However, few studies have focussed on localised interpretations, and many assume regional uniformity or use key parameters that are recursive or extrapolated by mathematical methods. This study provides a more intuitive and robust economic framework for projecting regional economic growth based on a neoclassical economic model and shared socioeconomic pathways (SSPs) scenarios. A non-uniform version of SSP2 (the middle-of-the-road scenario) was developed, and more detailed population projections for China were adopted using municipal-level data for 340 districts and parameter settings based on China's recent development. The results show that China's GDP will vary substantially across SSPs by 2050. Per capita GDP ranges from 19,300 USD under SSP3 (fragmentation) to 41,100 USD under SSP5 (conventional development). Per capita GDP under SSP1 (sustainability) is slightly higher than under SSP2, but lower on average than under SSP5. However, SSP1 is a better choice overall because environmental quality and equity are higher. Per capita GDP growth will generally be higher in relatively low-income regions by 2050, and the upper-middle-income provinces will become China's new engine for economic growth. [ABSTRACT FROM AUTHOR]

This article argues for the construction of a new political economy based on Chinese practices. It begins with an explanation of the research approach of starting from practice, and from a distinctive mode of thinking that is akin to that of medicine, rather than Newtonian physics and mathematical logic. Then it discusses the present-day Chinese practices of combining socialism with market economy, state enterprises with private enterprises, the peasant economy with an industrial economy, and the party-state with the economy—all distinctive realities about the new Chinese political-economic system. The foil for the discussion is the long-standing hegemonic ideology and worldview of Anglo-American classical and neoclassical liberal economics and law. This article suggests that we employ China's traditional dyadic integration worldview, evident in today's practices, to arrive at a new integrative cosmological view that rises above both. To a considerable extent, this article is also a reinterpretation of classical Marxist political economy. What the article advocates may be termed a "participatory socialist market economy," to be distinguished from a bureaucratized and controlling socialist planned economy. This is a system that is still very much in the process of formation, its particular content and characteristics yet to be clarified and specified through a sustained period of searching through practice. [ABSTRACT FROM AUTHOR]

China has enjoyed high saving and high investment ratios by international standards. However, mainstream economists argue that China suffers from inefficient investment due to excessive state interventions. The mainstream argument is in conflict with the observed high output-capital ratios and rates of return on capital in China before 2008. China's investment efficiency has deteriorated since 2008 despite the progress of financial liberalization. In this essay, we used provincial-level panel data from 1993 to 2017 and the technique of General Method of Moments to examine how China's saving and investment respond to output-capital ratio, gross profit share, and real interest rate. We find that output-capital ratio has positive effects on saving and investment in all three periods (1993–2000, 2001–2008, 2009–2017); gross profit share has positive effects on saving; but gross profit share has negative and significant impact on investment for the period 2009–2017. We find that real interest rate has significant and negative impact on China's saving for the period 1993–2000, a result that is inconsistent with the neoclassical theory of saving. On the other hand, real interest rate has a significant and negative impact on investment and a significant and positive impact on saving for the period 2009–2017, consistent with what should happen in a liberalized financial market according to neoclassical economics. These findings suggest that China's financial market may have become sufficiently liberalized to induce the "correct" behavior from businesses and households but the "correct" behavior has not yet led to improvement in China's investment efficiency. [ABSTRACT FROM AUTHOR]

Neoclassical economics relies on highly formalized deductive logic to create an overly simplified picture of economic practices. Its universalized model of modernization assumes that the relationship between state and market is antagonistic. This presumption reduces China's "economic miracle" to a simple transformation into a market economy and underestimates the role played by the government, making it impossible to construct a theory that considers China's subjectivity. Studies on China's economy should focus on its practices, which may appear to be paradoxical if seen only from the perspective of Western neoclassical economics, in order to construct an accurate depiction of the foundations of China's development experience. Only through such an endeavor will it be possible to incorporate into any new theory of economic modernization the distinctive features of China's development. [ABSTRACT FROM AUTHOR]

In August 1988, state media reported on government plans for radical price decontrol, inciting panic buying and worker protests (252). [Extracted from the article]

This paper explores the implications of one of the great intellectual revolutions of the late twentieth and early twenty-first centuries, the replacement of Marxist economics by neoclassical economics in China. The analysis summarizes what is distinctive about Marxist and neoclassical ways of thinking. The paper then demonstrates how these differences led to different framings and different conclusions about a number of key topics related to the development of capitalism in China. Among the topics explored are the merits of state-owned enterprises, the nature of inequality in China, and the relationship between capitalism and the environment. The paper concludes with a discussion of the different policy agendas that emerge from the different framings offered by neoclassical and Marxist economics. JEL Classification: B41, B51, P2, O53 [ABSTRACT FROM AUTHOR]

This article examines the application of neoclassical economics to the discussion of China's transition to the market in the 1990s and its accession to the World Trade Organization (WTO) in 2001. It shows how this theory shaped, and misled, forecasts of the impact of that accession and of China's subsequent economic performance. It discusses the debate between mini-bang and big-bang transition policies in the 1990s and shows the two sides shared far more in common than separated them. Both sides misestimated, in fact grossly underestimated, the dynamism of China's economy. It shows how widely anticipated predictions of crisis and collapse with China's WTO accession were the natural result of the assumptions of the neoclassical model. It suggests that a rival model of market transition based on Bukharin and Kuznets has much to offer. JEL Classification: P22, P26, P21, B24 [ABSTRACT FROM AUTHOR]

This study examines public sentiment during the COVID-19 pandemic, considering time, space, and the severity of the event, and leverages the marginal rate of substitution (MRS). Based on the context of COVID-19 transmission in a mega-city, we set up a novel theoretical model of public sentiment, showing the time-space substitution effect. Then, using the daily panel data including all the prefecture-level cities in China, empirical results show that the level of public sentiment is positively related to the severity of the event, while it is negatively related to the distance and the length of the period. To make the level of public sentiment equal, 1 km farther from the center of the event will require 0.072 to 0.130 days closer to the starting time on average. We further investigate the relationship between the level of public sentiment and time, which can be better depicted as a reversed U-shape. The original contribution of the piece arises principally around the novel application of the concept of the marginal rate of substitution drawn from neoclassical economics, providing insightful policy implications for pandemic control. • This study examines public sentiment during the COVID-19 pandemic. • We set up a novel theoretical model including severity, time, and space. • We show the time-space substitution effect of public sentiment toward major events. • The level of public sentiment is negatively related to the distance and the length of the period. • Marginal rate of substitution (MRS) is calculated as 0.072 to 0.130 on average. [ABSTRACT FROM AUTHOR]

Since the economic reforms of the 1970s, local Chinese urban authorities have requisitioned rural land near cities. To protect their land from these practices, many urban village collectives have established a cooperative shareholding system, but their motives remain unclear. Neoclassical economics suggests that such enterprises seek to maximize profits. Guided by the original institutional‐economics approach, I investigate this question empirically by interviewing residents of Mengke village in Chaoyang city, Liaoning Province, northeast China. These data reveal four startling findings about the motives behind the shareholding system. First, collective economic organizations do not simply seek the maximization of profit. Second, the shareholding cooperative system adopted by village collectives helps villagers resist external threats such as land loss. Third, the collective economic organization is not merely a firm or a single market; it may work as a firm and a market simultaneously. Finally, managing of common property contributes to maintaining the identity of the collective. These findings suggest that the theories of neoclassical urban economics and new institutional economics fundamentally mischaracterize urban cooperatives. [ABSTRACT FROM AUTHOR]

In recent years, e‐commerce has become a phenomenal symbol for the ongoing socio‐economic transformation in China. Driven by the growth of the Internet and cyberspace, e‐commerce changes both the traditional patterns of economic transactions and the social relations embedded in social activities. E‐commerce is a new catalyst for economic growth in China as it reduces restrictions to market access and the costs of transaction. This research examines the geography of e‐commerce in China within a theoretical framework grounded by social theory and neoclassical economics. After presenting a background of the development of e‐commerce in China, the spatiality of e‐commerce and its correlation to socio‐economic variables are examined with both quantitative and geovisualization techniques. Results of this research address that the growth of e‐commerce in China presents a nationwide inequality constrained by local economic, politic, and infrastructure conditions. The growth of e‐commerce in China presents a hybrid feature in terms of spatiality, which relies on structures in both cyberspace and physical space. Policy implications and suggestions for future research were suggested based on these empirical results. A discussion of limitations associated with this research and a concluding note close the research. [ABSTRACT FROM AUTHOR]

This paper takes an interdisciplinary perspective to focus on the role played by the rural-urban dual system in China's urbanization and migration. We explain its establishment in China in the 1950s and its genealogy in the industrialization strategy adopted in the USSR in the late 1920s and early 1930s. In the reform era, the system has been refashioned to suit a new set of demands of the state industrialization strategy to cater for the global economy. We analyze the mechanisms of the dual system, and how it has helped generate low-cost migrant labor for urban employers and siphon off revenues for urban governments by expropriating rural land. We also argue that there are fundamental differences between the dual system and the common "dualism," based on the Lewis dual-sector model, as observed in many developing countries. The plight of children of migrants is used to illustrate the main points made in the paper. Our research challenges the prevailing perspectives in Chinese geography and urban studies, many of which are based on market-driven neoclassical economics or global neoliberalism, often ignoring China's historical and institutional contexts. [ABSTRACT FROM AUTHOR]

This study integrates neoclassical economics and institutional theory to examine the relationship between market factor distortion, technical innovation, and China's electricity consumption, using business data from China (2008–2014). First, we provide evidence that factor market distortion promotes electricity consumption of industrial enterprises in China. Secondly, we divide technical innovation into traditional technical innovation and green innovation, finding that the level of technical innovation has an inverted U-shaped effect on the electricity consumption of industrial enterprises. Further, we also provide evidence that factor market distortion amplifies the inverted U-shaped effect of the technical innovation plot. The results show that accelerating the reform of the market, and promoting green innovation, should be regarded as important strategies for national energy saving and emission reduction. [ABSTRACT FROM AUTHOR]

Agricultural geography has remained largely trapped in a neoclassical economic paradigm in which farm types have been understood to be predominantly products of location and global markets. This paper attempts to subvert this approach by reflecting on the emerging culture of small scale ecological farming in Shanghai. Such farms have been growing in number since 2000, driven largely by the availability of land and an increasing demand for safe and healthy food. While being a rational productivist response to a market opportunity, however, these farms reflect a break with conventional farming, in terms of their size, location and new farmer identities, as well as their socio-cultural relationships with customers and local communities. Using a survey of 45 such farms, the paper illustrates how and where new forms of farming, and the alternative food networks that they support, are colonizing the city. While being redolent of the growth in urban farming in many western cities, farming in Shanghai is driven by private individuals with personal and family, as well as broader community, motives. This suggests that while Shanghai may be experiencing the growth of alternative forms of what might be understood as civic agriculture, those involved are not primarily interested in the civilizing mission ascribed to many such movements. Rather, the new farms are hybrid service businesses in which the sales and marketing skills of the new farmers have allowed them to transform individual customers into members of food networks who form mutual co-dependent trust relationships that underpin the survival of the farms. Perhaps as a result of this, and despite strong demand for organic food, these new farms face a marginal existence in which business development is constrained as much by the strength and continuity of their food networks as it is by the quality and quantity of food that they can grow. [ABSTRACT FROM AUTHOR]

This paper surveys the literature on costs and benefits of South-South versus North-South economic exchanges. Unlike the case for North-South exchanges, academic work on South-South economic relations has been historically limited given their marginal importance in the global economy. After the 1990s, the literature has changed in two main ways. First, South-South trade and finance since then has increased dramatically, leading to a bourgeoning literature on the topic. Second, the rise of the Emerging South has opened up new lines of inquiry to include not just the traditional topics of trade and preferential trading agreements, but also cover technology transfer, capital flows, labor migration, institutions, and environment. We discuss how this literature has evolved to take into account the greater complexity of South-South relations with a focus on China in Africa as well as the blurring of the lines between heterodox and mainstream analysis of South-South relations. We end the review by showing how the empirical and theoretical literature is exploring the increasing divergence within the global South between what we refer to as the Emerging South and the Rest of South. [ABSTRACT FROM AUTHOR]

Following Ertur and Kock (2007) and Elhorst, Piras, and Arbia (2010), a spatially-extended neoclassical Solow growth model is developed to explore the spatial characteristics of regional economic growth at the prefecture level over the period 1992-2010 in China. A Spatial Durbin Model with the spatial fixed effects is verified in empirical analysis. The results show that spatial spillovers exist not only among the economic growth of neighbors, but also among the initial economic levels of neighbors. Furthermore, the same analysis is conducted for a new specified sample by controlling spatial heterogeneity, and the results show that spatial spillover effects are enhanced and the velocity of convergence is greater. The empirical analysis verifies that the extended neoclassic growth model is a feasible foundation to explore the spatial characteristics of regional economic growth over the period 1992-2010 in China. [ABSTRACT FROM AUTHOR]

Relying on a large panel of Chinese firms, this article attempts to investigate the effects of technological relatedness on firm survival and subsequent success (e.g., profits and productivity). The results show that related establishments that colocate together outperform their counterparts located elsewhere, although it is not clear whether these findings are due to the presence of externalities or alternative explanations. To explore this issue, several proxies for the Marshallian sources of relatedness are further developed to better reveal the underlying mechanisms that drive relatedness. The findings show that technological proximity helps to respectively reduce the costs of moving goods, people, and ideas, thus providing strong support for Marshallian theories of agglomeration. The ownership structure of the firm matters, however. Specifically, wholly privately owned enterprises are more successful than firms where the state is a minority shareholder at converting technologically related spillovers into higher profits and higher-efficiency gains. [ABSTRACT FROM PUBLISHER]

We develop a methodology to construct nonparametric counterfactual predictions, free of functional form restrictions on preferences and technology, in neoclassical models of international trade. First, we establish the equivalence between such models and reduced exchange models in which countries directly exchange factor services. This equivalence implies that, for an arbitrary change in trade costs, counterfactual changes in the factor content of trade, factor prices, and welfare only depend on the shape of a reduced factor demand system. Second, we provide sufficient conditions under which estimates of this system can be recovered nonparametrically. Together, these results offer a strict generalization of the parametric approach used in so-called gravity models. Finally, we use China's recent integration into the world economy to illustrate the feasibility and potential benefits of our approach. (JEL C51, D51, F11, F14, O19, P33) [ABSTRACT FROM AUTHOR]

Despite increasing evidence documenting the role of the outgoing audit of natural resources (OANRA) in environmental governance and enterprise innovation, little is known about its impact on enterprises' total factor productivity (TFP). To address this question, we treat the OANRA policy launched in 2014 in China as a quasi-natural experiment. We adopt a difference-in-differences-in-differences (DDD) method that exploits three-dimensional variations: city (i.e., OANRA cities versus non-OANRA cities), industry (i.e., more polluting industries versus less polluting ones), and year (i.e., before and after the OANRA policy). Employing a dataset of Chinese industrial listed companies from 2012 to 2019, we reveal that after the OANRA implementation, enterprises' TFP in more polluting industries of OANRA cities decreases by 4.0%. Our mechanism analysis shows that the OANRA restrains the TFP by reducing the financing scale of enterprises and increasing environmental investment of governments. Further, the heterogeneity analysis finds the inhibitory effect of the OANRA is more prominent in large-scale and state-owned enterprises, as well as enterprises located in eastern, low fiscal pressure, and high pollutant emission cities. Our findings provide support for the neoclassical economics hypothesis that the OANRA increases enterprises' compliance costs and decreases their productivity. • We study the relationship between the outgoing audit of natural resources assets (OANRA) and enterprise productivity. • We exploit the difference-in-differences-in-differences analyses and an instrumental variable design. • Evidence suggests enterprises' TFP in more polluting industries of OANRA cities decreases by 4.0%. • Evidence shows the OANRA restrains enterprises' TFP by reducing financing scale and increasing environmental investment. • Our study reveals the possible negative economic impacts of the OANRA and provides recommendations for policy optimization. [ABSTRACT FROM AUTHOR]

In the context of globalization, China has been widely regarded as the most successful country in the world in utilizing inward foreign direct investment (FDI) for economic development. The mainstream of the literature has produced a wide range of studies that are largely within the theoretical framework of neoclassical economics, and they tend to conclude that FDI has contributed significantly to Chinese economic development—through capital formation, export expansion, technology transfer, and the transformation of the economic structures and institutions. The objective of this paper is to assess the role of FDI in Chinese economic development with reference to the broader theoretical literature on FDI and late development, which encompasses structuralism and radical political economy along with neoclassical economics. From the perspectives of the broader literature, the analyses of the paper find that FDI in China has indeed promoted economic development in one respect (improving allocative efficiency), but has also had unfavourable effect in another respect (worsening productive efficiency), resulting in an overall impact that tends to be on the negative side. The mainstream story of China is thus judged to be partial, and the lessons to be drawn from the experience are arguably far more complex than have been hitherto perceived. [ABSTRACT FROM AUTHOR]

This article discusses the historical, cultural, and philosophical values that have helped mold modern China and its powerful and thriving economy, and examines how they have helped shape and influence China's current Anti-Monopoly Law, which has been in effect since 2008. China's Anti-Monopoly Law reveals China's continuing commitment to honoring and following its traditional Confucian ethics and morals in regulating behavioral and structural competition issues. Rather than following a western neoclassical economic approach, China is pursuing an evolutionary approach in its Anti-Monopoly Law that emphasizes Confucian norms of morality, ethics, fairness, and reciprocity, and the importance of economic diversity, variation and multiplicity. The article explains why continuing cries for China to "get in step" with western neoclassical economic theory are likely to fall on deaf ears. [ABSTRACT FROM AUTHOR]

ABSTRACT This study fills a void in the piracy literature by describing the results of a qualitative investigation of buyers conducted in mainland China, one of the largest piracy markets in the world. Chinese college students, invited to write essays expressing their views, revealed themselves to be active buyers of fake music and movies, untroubled by any legal or ethical issues. Theories of cognitive dissonance and neoclassical economics are used to explain the behavior of buyers. A surprising result is the feeling of young Chinese that their government is unwilling and/or able to control piracy. Another insight not previously revealed in the literature is the Chinese essayists' condemnation of foreigners as hypocrites who preach against piracy while avidly buying fake goods themselves. Copyright © 2013 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

Drawing on the historical institutionalists' emphasis on the effects of ideas on policy making, this paper focuses on the importance of economic ideas and ideologies on China's trade policy making with regard to the signing of the WTO agreement with the United States in 1999. The paper argues that trade liberalization in China was a result of top Chinese leaders' embrace of neoclassical economic ideas which conceive a small role for the state in the marketplace, mainly as the regulator of the macro-economic environment and as the enforcer of the rule of law, rather than as a major player in the marketplace. Top Chinese leaders' socialization with neoclassical economic ideas enabled them to forge a political consensus to link state-owned enterprise (SOE) reforms with speedy WTO accession and led to China's major concessions in WTO negotiations with the United States in 1999 which were inconceivable just a few years ago. [ABSTRACT FROM AUTHOR]

Although industrialization first occurred in England, it is thought that China, not England, may have been the world leader in technology at the time. Yet, China did not industrialize until 150 yr after England and nearly a century after less advanced European countries. This represents a puzzle because two-sector neoclassical growth models, such as Hansen and Prescott (2002) , that accurately match industrialization, require that more technologically advanced countries industrialize at an earlier date. I find that a model that accounts for cross-country heterogeneities in population density accurately predicts the timing of industrialization in China. ( JEL F43, N10, N30, O11, O14, O41) [ABSTRACT FROM AUTHOR]

The article presents a correction to the article "Marshallian Sources of Relatedness and Their Effects on Firm Survival and Subsequent Success in China" in the journal's 2017 issue.