Search

Begin New Search Topic Government Political Geography Asia Content Type Working Paper

121. Tax Reforms for Enhancing the Stable Development of the Chinese Financial System

Author:
Lawrence J. Lau and Guijuan Wang
Publication Date:
09-2003
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
The Chinese economy has had the highest rate of growth in the world in the past two decades. However, despite its rapid growth and the significant improvements in its financial system, serious risks and problems still exist in both the commercial banking sector and the stock market, that may potentially threaten the stable development and growth of the entire economy. In this paper, these risks and problems in the stock market and the commercial banking sector are identified. Possible solutions are then discussed. Finally, tax reforms are proposed that have the effects of (1) eliminating the double taxation on cash dividends from corporate profits; (2) encouraging the substitution of new equity for existing debt by corporations, which can lower the P/E ratios without lowering the stock prices and improve quality of commercial bank assets by reducing the probability of new nonperforming loans; and (3) attracting new and longer-term investors, both domestic and foreign, to the Chinese stock market. It is also shown that the proposed tax reforms will not result in a significant reduction in total fiscal revenue.
Topic:
Economics and Government
Political Geography:
China and Asia

122. The Politics of China's Shareholding System

Author:
Mary Comerford Cooper
Publication Date:
06-2003
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
This paper considers two questions. First, why did the Chinese government establish stock markets? Second, how have political interests shaped the key features of these markets? Based on both interviews and statistical analysis, the paper argues that China's top Party-State leaders attempted to create stock market institutions that allow the state to maintain control over listed companies, and over “the market” as a whole.
Topic:
Economics and Government
Political Geography:
China, Israel, East Asia, and Asia

123. Local Governments and the Chinese Stock Market

Author:
Mary Comerford Cooper
Publication Date:
04-2003
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
This paper examines a key aspect of the politics of stock markets in China—the distinct differences in interests between central government leaders and local governments. Central government leaders have a powerful incentive to promote macroeconomic stability and good performance of the stock market. Local leaders, for their part, are less concerned with the overall performance of the stock market than with gaining access to the stock market for companies under their own jurisdiction. The paper demonstrates that company listing brings tangible economic benefits to municipalities. Listed companies are associated with higher levels of gross domestic product (GDP), budgetary revenue, and industrial and commercial tax revenue. Therefore, it is not surprising that local officials put substantial effort into lobbying for the right to list additional companies on the national stock exchanges.
Topic:
Communism, Democratization, Economics, and Government
Political Geography:
China and Asia

124. Sociological Dimensions of China's Economic Transition: Organization, Stratification, and Social Mobility

Author:
Andrew G. Walder
Publication Date:
04-2003
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
Despite skepticism about official economic statistics, there is little doubt that China since 1978 has undergone an economic transformation of historic proportions. This outcome stands in stark opposition to arguments that were once widely accepted in several scholarly communities, and which are still highly influential even today. In the early 1980s there was wide agreement that “partial” reform, under a single party dictatorship that sought indefinitely to preserve public ownership, was a recipe for failure. China specialists, students of comparative economic systems, and economists who advised governments and international agencies about postcommunist restructuring in Eurasia were initially in broad agreement on this point.
Topic:
Economics, Government, and Politics
Political Geography:
China and Asia

125. International Organizations and Democratization: Testing the Effect of GATT/WTO Membership

Author:
Mary Comerford Cooper
Publication Date:
04-2003
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
Does the World Trade Organization promote democracy? A large part of the heated and protracted debate over China's application for WTO membership revolved around this question. Prior to China's WTO accession in December 2001, this debate had dragged on for nearly fifteen years. While one side argued that WTO membership would promote democratization in China, others argued that the wealth generated through economic integration would provide the resources to maintain authoritarian rule. Only time will tell whether WTO accession will contribute to pressures for democratization in China. In the meantime, however, this paper examines the empirical basis for these competing claims about the effects of GATT/WTO memberships on domestic political systems. Based on statistical analysis of a global data set, this paper concludes that members of the international trade regime are more likely than nonmembers to be democracies. However, there is little evidence that WTO membership in itself can promote democratic transition. Instead, it appears to be the case that democratic countries are more likely to seek to join the WTO.
Topic:
Communism, Democratization, Economics, and Government
Political Geography:
China and Asia

126. Politics and Property in Transitional Economies: A Theory of Elite Opportunity

Author:
Andrew G. Walder
Publication Date:
04-2003
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
Command economies gave communist-era elites administrative control and material privilege but severely restricted money income and private wealth. Markets and privatization inject new value into public assets and create unprecedented opportunities for elite insiders to extract incomes or assume ownership. These opportunities vary with the extensiveness of regime change and the barriers to asset appropriation. Within these limits, they further vary with the concentration and form of economic assets and structural changes induced by reform. Elite advantages are smallest where regime change is extensive and barriers to asset appropriation are high, and in small-scale economies that grow rapidly. In China, there has been no regime change and privatization has been delayed and slow. In the rural economy, elites keep their posts as a source of economic advantage, while low entry barriers to household enterprise and rapid growth have created new entrepreneurial elites. After two decades, rural officials nonetheless enjoy large net income advantages that grow along with the expansion of labor markets and private entrepreneurship. These are not generic outcomes of market reform, but the product of market reform in distinctive political and structural conditions.
Topic:
Communism, Economics, Government, and International Trade and Finance
Political Geography:
China and Asia

127. China's New Leadership: Paradoxes, Characteristics and Implications

Author:
Cheng Li
Publication Date:
01-2003
Content Type:
Working Paper
Institution:
Aspen Institute
Abstract:
In his seven-decade-long academic career, the great British historian, Joseph Needham, tried to explain what Sinologists later called “the Needham Paradox.” It was a paradox that, while traditional China had many talented people and was advanced in science, the country declined during the middle part of the last millennium. According to Needham, a primary reason for the decline of China was that the country “lost its edge” by suppressing technicians and merchants “whose power posed a threat to the Emperor.”
Topic:
Government
Political Geography:
China, Israel, East Asia, and Asia

128. Taiwan's Approach to Cross-Strait Relations

Author:
Ying-jeou Ma
Publication Date:
01-2003
Content Type:
Working Paper
Institution:
Aspen Institute
Abstract:
Civil war broke out between the Nationalist Kuomintang (KMT) Government of China and the Chinese Communist forces shortly after Japan surrendered to the Allied forces in 1945. Having occupied most of the country by mid-1949, the Chinese Communists proclaimed in Beijing the establishment of the People's Republic of China (PRC) on October 1, 1949. The Nationalist Government retreated to Taiwan, an island of 13,969 square miles just 90 miles off the coast of the Chinese Mainland, in December that year and continued to call itself the Republic of China (ROC). Sporadic battles continued in coastal areas of the Chinese Mainland.
Topic:
Foreign Policy and Government
Political Geography:
United States, Japan, China, Israel, Taiwan, Beijing, East Asia, Asia, and Island

129. Taiwan Strait I: What's Left of 'One China'?

Publication Date:
06-2003
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
In the last decade, Taiwan has moved slowly but surely away from its commitment to the idea of 'one China', the proposition, long agreed on both sides of the Taiwan Strait, that Taiwan and the mainland are parts of one country. This has led to steadily mounting tension between Taiwan and China, for both of whom the issue goes to the heart of their sense of identity. While the prospect of an outbreak of war across the Strait remains distant, action is needed by all relevant parties to contain and reverse the situation.
Topic:
Government, Politics, and Sovereignty
Political Geography:
China, Taiwan, and Asia

130. The Politics of Center-Periphery Relations in Afghanistan

Author:
Barnett Rubin and Helena Malikyar
Publication Date:
03-2003
Content Type:
Working Paper
Institution:
Center on International Cooperation
Abstract:
The relationship of the central government of Afghanistan to the other units of government is in many ways a proxy for the relationship of state to society. It would not be so if the state were more institutionalized and in control of the territory and population of the country. But the current situation, where the direct administrative control of the government is largely limited to the capital city and environs, and in which the government relies on international support (“foreign” support to its opponents) to exercise that control, has precedents in other eras of Afghan history.
Topic:
Democratization, Development, and Government
Political Geography:
Afghanistan and Asia