Journal Name: The Journal of Econometric Study of Northeast Asia (JESNA): Volume 5, Number 2, October 2005
Print ISSN: 1880-6988
Industrial Productivity and the Cost of the Chinese Economy:
An Analysis of Inflation Using 1987, 1992 and 1997 Input-Output Tables (pp1-22)
Fei Wang (University of International Business and Economics), Songhong Guo (Shanghai University) and Mitsuo Ezaki (Nagoya University)
Inflation has occurred repeatedly in China. It is still regarded as one of the big issues endangering stable and sustained economic growth. This paper analyzes the cost structure (inflation), total factor productivity (TFP), and their relationships by industry in China for the period 1987-1997, using 1987, 1992 and 1997 input-output tables. For this purpose, we estimate the capital stock by industry and the 1997 input output table at constant 1990 prices. We divide the whole ten-year period into two parts: 1987-1992 and 1992-1997. This discussion is made because China adopted policies for the socialist market economy in 1992, since when nearly all prices have been determined in the market. For the two periods, we compare and examine the cost structure of each industry, the relationship between productivity and inflation, and the contribution made to the improvement of the productivity (TFP) of the Chinese economy by adopting the market economy. We also discuss some implications for inflation since 2003, with reference to the government policy of macro-control.
Keywords: input-output analysis, output price, input cost, TFP by industry, China, transition period
A Method for Constructing an Interregional Input-Output Model of China for 2000 (pp23-36)
Nobuhiro Okamoto (Development Studies Center, Institute of Developing Economies-JETRO), Yaxiong Zhang (State information Center), Shiro Hioki (Tohoku University), Takaaki Kanazawa (Wakayama University) and Kun Zhao (State Information Center)
Institute of Developing Economies (IDE) – JETRO in Japan and the State Information Center (SIC) in China organized the research group for compiling interregional input-output model for China in 2001 and completed its compilation work in 2003 under the severe circumstance of the data availability. This paper attempts to discuss what we have done and what we have solved the problem occurred on the compilation process of interregional Input-Output Model for China. In the discussion, we explained that we applied the Chenery-Moses type (column) model, we conducted the sample survey and executed Gravity model for estimating the interregional commodity flow. To our best knowledge, it is the first attempt both in China and abroad to build the CMRIO in terms of this scale and conducting the survey. It is no doubt that there might be the space to improve the estimation methodology.
Keywords: interregional input-output model, interregional commodity flows, gravity model
Regional Input-Output Tables Based on Supply and Use Frameworks: The Case of the Russian Far East (pp37-59)
Nadezhda Mikheeva (Institute of Economics Research, Hitotsubashi University)
This paper presents approaches to constructing regional input-output tables based on supply and use frameworks. This technique was applied to estimating the regional input-output table for the Russian Far East for 2002. Data for national and regional accounts, industrial statistics and special surveys conducted by national and regional statistical bodies were used for these estimates. Macroeconomic aggregates based on SNA and estimated detailed use tables at purchasers' prices are also presented.
Keywords: regional input-output tables, supply and use frameworks, use table, Russian Far East
China's Balance of Payment Model: A Prototype Approach Based on New IMF Data (pp61-71)
Wang Tong (Institute of Economic Systems and Management, National Development and Reform Commission)
Based on newly revised annual statistical data that fully follows the IMF formula, an econometric model was constructed as a prototype model for the international balance of payments block for China, although this covers only a short period from 1997 to 2003. The model (CBIP) contains 20 endogenous and 7 exogenous variables. The model was tested for the observation period and also extrapolated for 2004. The results are compared against actual performance. Interesting features of the Chinese international balance of payments are also discussed in the context of the modeling.
Keywords: international balance of payments, IMF formula, current account, capital and finance account, reserve assets
Testing a Profitability-Concentration Relationship: An Empirical Study (pp73-89)
Donghun Kim (International University of Japan)
In this paper we evaluate the relative importance of firm efficiency and market power to performance in Korean manufacturing industries. Among the paper's distinguishing features is the specification of firms' price-cost margins as the weighted sum of domestic price-cost margin and export price-cost margin to control for the more competitive export price-cost margin in the evaluation of domestic market power. We estimate Tobit models to overcome the truncation bias of the ordinary least squares estimation and introduce Spline Regressions to test the structural differences among conjectures that represent the various ranges of competition. We verify that there is a strong market-power effect in the Korean manufacturing sector after controlling for the market share-profit efficiency effect.
Keywords: Price Cost Margin, Firm Efficiency, Market Power, Korean Manufacturing Industries, Tobit Model, Spline Regression
(This journal is available online: http://www.erina.or.jp/Jp/Jf/lib-f1.htm)