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Finance & Trade Economics No. 2, 2010 Keywords : Low Growt h, Inflation, Positive Fiscal Policy, Policies Coordination The Gains of China s integration into the East Asian Production Net works : An Analysis Based on Net Value2added of 20 Industrial Sectors YU Chunjiao ( School of Business, Hubei U niver sit y, 430062) CH EN Yongmei ( Instit ution of Finance and Trade Economics, CASS, 100836) ZHAN G Jieying (School of Business, Hubei U niversity, 430062) In order to evaluate t he gains of China s integration into t he East Asian p roduction networks, t his paper calculates China s net value2added created by imported intermediates from East Asia in 20 industrial sectors and it s share in total export s during 1992-2007. The result s show t hat : net value2added of imported intermediates f ro m East A sia has increased rapidly, while t he share of net value2added in China s total industrial export s remains low and t he growth rate of t he share is limited. Even t ho ugh higher percentages of net value2added are fo und in technology and capital intensive sectors, mo st indust rial secto rs show no significant increases in t he share of net value2 added. Therefore, we should f urt her deepen vertical specialization between China and East Asia and enhance t he absorptive capacity and self2innovation ability of local enterprises to upgrade Chi2 na s position in East Asian production networks so as to get more trade gains. Keywords : East A sian Productio n Net works, Vertical Specializatio n, Trade Gains, Net Value Added Connotation, Def inition and International Comparison of Digital Content Industry WAN G Bin (School of Economics Xiamen University, 361005) CA I Hongbo (Beijing Normal University, 100875) Chinese government has p ut forward " Cult ural Indust ry Pro motio n Plan" to speed up develop2 ment of national digital content industry not long before. This paper describes t he differences and linkages bet ween informatio n p ro duct s, co ntent p roduct s, digital p roduct s and digital co ntent product s. Based on t he comparison of concept s related with digital content product s and services, we clearly define the scope and target of digital content p roduct s and industry. Two policy recom2 mendations are provided to promote t he develop ment of digital content industry of China. Keywords : Info rmatio n Product s, Co ntent Product s, Digital Product s, Digital Co ntent Indust ry The Effect of Service Transition on Company Values WEN G Zhigang, WAN G Haiyan & WAN G Ping (Sout hwestern U niversity of Finance and Economics, 611130) The aut hors analyze t he effectiveness of service transition strategies by evaluating secondary panel data of 159 listed manufact uring companies during 2003 2008. The impact of a company s serv2 ices transition to on company values (as measured by Tobin s Q) remains U2relatio nship bet ween t he characteristics. In addition, we find t hat the service transitions stay on a low level and have negative impact s on company value. Furt hermore, we analyzes t he effect s of service transition on co mpany value at co mpany and indust ry levels respectively f ro m reso urce2based view. We discov2 ers t hat t he market share and resource adequacy have negative or insignificant effect at company level. At industry level, industry growth shows positive effect, while industry competitiveness negative. Finally, we explain service transition and company values wit h t he combination of mar2 ket characteristics of China and financial characteristics of listed co mpanies. Keywords : Service Transition, Company Values, Service ratio, Tobin s Q, Resource2based View