Write a Research Proposal
The main purpose of this progress report is to write a research proposal for your senior thesis.
Your research proposal should consist of the following contents.
Research question
Describe the purpose of your research. What is your research question? What would you like to
shed light on? You need to convince me why this is an important research question. Why is it
worth to answer your question?
Institution
In this section, describe the particular institution (an industry, a regulatory or de-regulatory
episode, a government institution or program, etc.) which you plan to do research on. This
section is going to be Introduction section in your thesis. Obviously, you can use your progress
report B on this section.
Existing studies
Summarize scientific background/ existing literature of the research. Knowing what have been
done is very important because your thesis should have some new contributions on academics
(i.e. you cannot just repeat what someone else has done).
Methodology
Describe your ideas of research method. You should show practical ideas. For example, if you
plan to conduct an empirical study, then you should here describe:
 Hypothesis (To answer your research question, what kind of hypothesis would you want to
test?)
 Data description (Search available data sources for your research)
 Estimation model (Which variables to use? Linear model? Etc.)
If you plan to conduct a theoretical study, then you may want to describe here:
 What kind of model do you plan to use? Do you want to extend an existing model or
construct a new model?
 What kind of assumptions do you have to impose on your model ? What are exogenous
variables and endogenous variables in your model? Etc.
Expected result
Preparing progress report
Write your expected results in this section. Be ready to get unexpected results though. If you get
unexpected results, you should be able to reason them.
Formal-free: A4 not more than 5 pages.

Topics chosen by senior students

•The Quantity and Price Strategies of Large Enterprises in Garment Industry

Abstract – I investigated the status quo of the garment industry in Changshu. And through analyzing the statistics I collected, I preliminarily discovered that the garment industry is facing a crisis situation in recent years. With finding one of the possible reasons of too many new enterprises entered the industry, I decided to analyze this saturation problem and find some theoretical solutions to improve the serious situation in this industry to some extent. Specifically, with combining Cournot quantity setting model and Bertrand Price setting model, I will figure out whether the increasing number of large enterprises will lead to the profit decline of both large firms and the entire industry by setting: 1. One monopoly and monopsony large firm makes decisions of output level and processing price in a vertical integrated market 2. Two duopoly large firms compete in the same vertical integrated market by setting best output level and processing price.

•Cost Efficiency of Commercial Banks and Small and Medium-sized Enterprise Financing in China

Abstract – This paper analyzes two main current issues faced by commercial banking industry in China. Using the Data Envelop Analysis approach, cost efficiency of commercial banks in the last five years is measured. The result shows that Big Four banks in China remain cost inefficient comparing with other commercial banks. Another issue is financial access of small and medium-sized enterprises in China. Using the regional data, this paper tries to test the effects on small and medium-sized enterprises growth brought by both big bank and small city commercial bank, and whether there is a difference in the effect from big bank and small bank. Due to the limited data, no clear relationship can be concluded. In spite of that, case study on China Minsheng Bank and alternatives small loan lenders give several strategy implications in improving commercial bank’s performance.

•Product Differentiation with Uncertainty: The Case of Organic Agriculture Industry

Abstract – I examine linear city duopoly where agricultural firms choose their price and chemical usage levels to maximise their profits. The price and amount of chemicals used upon production are the only variables of interests to consumers whose preferences are uniformly distributed. New to this model is that uncertainty exists on consumers’ end about how much chemicals are used for each agricultural good. It is more costly to produce organic products than otherwise. Equilibrium chemical level depends on additional cost for organic production in relation to uncertainty rate, transportation cost, and perceived chemical usage level of the two firms. Both firms will produce at full chemical usage level when the cost of organic production is neither too low nor too high. Otherwise, one firm will produce at zero chemical level and the other at full level, achieving the maximal product differentiation. It will also be shown in the third section of the paper that this Supermarket Model can account for a situation where there exists no uncertainty.

•Empirical Study on the Effect of Electronic Money towards Cash and Macro Economy in Japan

Abstract – Electronic Money was introduced to Japanese market twenty years ago, and since then it has shown a rapid growth in the market. Until 2015, it is shown that the market size of electronic money will increase up to 400billion yen. In this thesis, it focuses to reveal the relationship between the development of electronic money and cash money as well as to the macro economy by using econometric approach. From the empirical studies done, it is unclear to say electronic money effect the quantity of newly effected cash, but it was clear to say it has an effect to cash demand, especially to the coins. Moreover from econometric analysis, although it decreases the cash demand, electronic money will not lead economy to inflation, since their amount calculated by the price will not have strong enough effect. On the other hand, it has been revealed that the electronic money decreases total cost of issuing money and due to the characteristic of it, it expanses price setting range and utility of the society.

•The effect of health Food labeling on consumer preferences: A case of Japan’s health food industry

Abstract – This research aims to verify whether health claims on products can potentially cause positive effect on consumer preferences, focusing primarily on the case of Japan’s health food market. As consumers pay increasing attention to the maintenance of healthy lifestyle and food safety, utilization of food labeling has become an effective marketing strategy which could further lead to product differentiation and thus contribute to an increase in sales. Japan’s health food sector has been growing rapidly in the past decades and is currently considered the second largest market around the globe. However, products with health claims in Japan often require costly investment in order to fulfill the government regulation process and thus creating a dilemma that firms need to take into consideration. To help firms assess the value of health claims as perceived by general customers, a choice-based conjoint analysis was conducted focusing on the two main categorizations of health food: FOSHU (Food for specified health uses) and FNFC (Food with nutrient function claim). The study found that consumers indeed regard FOSHU health claim as a crucial factor which affects purchase decision. In addition, products that are labeled as utilizing domestic ingredients (Made in Japan) also pose as another factor which increases consumers’ preferences. On the other hand, FNFC health claim apparently doesn’t cause any measurable effect on consumers’ purchase decision. The domestic ingredient origin label, however, still holds its positive impact and remain a statistically significant factor.

•A Country-Level Panel Data Study on Determinants of Protein Demands

Abstract – The food market would be expected to increase, but meet an increase in food demand for more than 9.7 billion people in the future is the challenge to face. The aim of this study is to investigate the determinants of protein demands on a country-level from 162 countries through a panel data approach from 1997 to 2011. Subsequent to this, a further analysis on future protein demands by linear regression method is carried out. The result of the study shows that the demands of protein are driven by price, demographic and socioeconomic factors. Recently, urbanisation is one of the major demographic developments that change consumption patterns into more diverse. Age is one of the most driving factors for protein demands as body requirements for protein and the income level differ by age. In terms of socioeconomic factors, an individual or household income increases the degree of freedom to consume more diverse diet explained by Bennett’s law. The proportion of expenditure also changes with increasing income, while the effect of price has a negative impact on the purchasing power of food products. The study also finds that protein demands decelerate in developed countries and accelerate in developing countries.