"transition" Of Government Regulation In China During The Orientation

This paper focuses on regulation in China based on the research of the market status in quo in the period of Chinese transition, which is the difference with other researches. It points out that there are two kinds of market failures in China, which are the market failures caused by poor-working of the market mechanism and the failures caused by the lack of suitable economic institutions and mechanisms. The former is a common phenomenon in all market countries. However, the latter is peculiarly happens in countries in a transition period. Facing the different market failures, the governments need to resolve some different problems in regulation. This paper is to shine some light on the regulation in China during the transition period.The research analyses the above problems in the macro level and institutional level. That is the most valuable contribution of this paper, while most other researches focus on regulations in a specific industry. The macro perspective is the paper's strongpoint, in spite of its lack of microeconomic research relatively.The research methods used in this paper are also valuable. We have taken advantage of both the framework and the research method of corporation governance theory. Some methods in political science, economics and sociology are also used for reference. That's another innovation in this paper.There are 6 chapters in this paper.In chapter 1, we survey the developments in the theory of regulation. We study the origins, conceptions and types of regulation and deregulation. With regard to the regulation theory, we mainly discuss the theory of marker failure, the natural monopolization theory and the public interest theory. With regard to the deregulation theory, we compare the contestable market theory, regulation of natural monopoly, interest group theory and public choice theory. We discuss the effects of interest group, the vote paradox in public choice theory, and rent-seeking on regulation. Then we analyze the impact of information economics, property right economics, and contract economics on deregulation.In chapter 2, we analyze the current developments of Chinese markets economy.The purpose of doing this is to obtain a comprehensive understanding about the market in our country in the period of transition, and to get preparation for further research both on marker failures in China and the regulation policies' making in the economic transition. The paper argues that after 20 years development, the market economic system in china has been established, and China has transformed into a developing country. However, the economic system is not a mature one, many problems in market system still exist.In chapter 3, we mainly discuss those problems in Chinese regulatory practices. Firstly, we summarized the performance of government regulation and conclude that the performance of regulation is not satisfactory. Secondly, we deeply investigated the regulation from different aspects, including the regulation institution, the regulation agency's behaviors, regulation techniques, and the regulation supervising, etc. It points out that over-regulation and under-regulation are all exist at the same time in the practices, and over-regulation is the primary problem.The paper makes three conclusions about the regulation in China, which are as follows:First, government regulation is needed to be insisted on. Chapter 4 gives detailed discussion and argues that government is necessary in the period of economic transition and that regulation is necessary in the government intervention during the transition.Secondly, the innovation in regulation governance institutions is most needed. Chapter 5 initiated the analysis from the perspective of new institutional economics. Using the recent developments in the new institutional economics, we discuss the role of institutions, regulation institutions, and regulation governance institutions in turn. It points out the importance of regulation governance institutions in improving the performance of regulation. Based on some deeper investigations in current regulation problems existing in China, we concluded that the innovation of regulation governance institutions should be the main direction of regulation development. As for the detailed institutional innovation, we take advantage of the research framework and methods of corporation governance theory, and bring forward three advices on the innovation of the regulation governance institutions, which are: (1) to strengthen the legislation in regulation and reflect the demand of the public; (2) to strengthen the supervising of the public to regulation agencies; and (3) to strengthen the power of the interest groups as agencies of the public and to reform the minority interest groups.