Economic Analysis Of The Admission Of Foreign Law

The Admission of Foreign Law (AFL) is the Basic Theory of the Private International Law (PIL). AFL is the inception of the Choice of law and the commencement of the PIL, therefore the theory core and the development Path of PIL may be found in the reasons of AFL in some sense. But we can hardly draw the conclusion through the existing theory of the reasons of AFL, which is mainly about the model of"Universalism-Particularism- Universalism"and the simple and programmable analysis of the background of AFL. The same time we can not access the description which is meticulous comprehensive and dynamic. The main purpose of this paper is to explain the phenomenon of AFL and to reread the Italy Statute Theory from the economic perspective which is wider than the traditional legal view. Meanwhile we attempt to acquire the meaningful enlightenment about the theory and practice of PIL.There are two mainline in the paper from the overall perspective. One is the Italy Statute Theory which represents the historical mainline and the other is the methodology which is consisting of the mainstream paradigm and the comprehensive paradigm. Focus is the comprehensive paradigm. Specifically it is a six-part article.First, we finished the literature review about the Law Economics paradigm and the Economic Analysis of Private International Law and the research of AFL in the area of PIL. We found the defects of the mainstream paradigm are the exclusive value orientation and the neglected historical method. The study in the Economic Analysis of Private International Law focused on specific things, ignored the basis of things and the perspective of the analysis is limited to "state" and "personal" and the analysis basically followed the mainstream paradigm. From the literature review we further clarity of this study method, the content and significance.Second, we defined the meaning of the important concepts which will be associated with AFL closely though the research of the basic issues in the economic analysis of PIL at the same time we enriched the basic theory of the economic analysis of PIL. In this part We defined the scope From the aspects of the adjustment targets and tasks of PIL, the elements of PIL, the legal relations and the conflicts relations of PIL and the perspective should be divided into four parts which are personal perspective, law judge perspective, national perspective and international perspective according to the main legal relationship. The diversification perspective is Benefit to understand the "Costs and Returns," "values" and "methodology". In our opinion, the value orientation of the economic analysis of PIL should include "justice" and "freedom" and "order" except for "Efficiency" and we should analysis the dynamic value orientation from the value's characteristics consist of the Subjectivity, the timing and the space. We think that the main economic function of PIL is the allocation of jurisdiction which is to clear the main rights, to provide an incentive to reduce costs, to increase revenue. In the last of this part we proposed the comprehensive paradigm of the economic analysis of PIL. It means that we will apply the various economic theories and the basic theories of the economic analysis of PIL on the specific historical platform, which reflects the method of " the agreement of history and the logic " and the coalition of empirical analysis and normative analysis.Third, we adopted the mainstream paradigm of the analysis of AFL, the paradigm provides a comprehensive knowledge base compared with the established paradigm and through the criticism and examination of the mainstream, we further clarify the theoretical basis points of the comprehensive paradigm .On the one hand, from the empirical test about the cost-benefit analysis and game analysis of AFL, we got the conclusion which is that as limited to the "efficiency" and the only "rational" and as the premise and comparison of cost-benefit is difficult to define, cost-benefit theories and traditional game theory can not explain AFL. On the other hand, though the definition of the specific content of the cost-benefit in the national perspective and application of the theory of marginal cost-benefit to AFL, we got a preliminary dynamic, detailed description on the AFL issue and provided the relevant material for the comprehensive paradigm analysis.Fourth, we drew on the intuitive conclusions about the reasons of AFL by the study of the history details, and established the specific historical platform for the following comprehensive paradigm analysis. In this part, the analysis of the Italy Statute Theory and the legal factors, non-legal factors in this period offered the history material required by the following comprehensive paradigm analysis.Fifth, we constructed a three-in-one integrated paradigm analytical framework by "institution-act-market"."Institution" refers to the institution economic analysis of AFL, including institution changes theory and rights theory. In the first part, We found the meet points of the Institution Economics and AFL by the analysis of the connection between the concepts of "institution", "rights" and AFL. Then in the second part we analyzed AFL by the institution changes theory, from which we believed that AFL is the result of changes in the legal system, we thereby analyzed the objective reasons, subjective reasons and purpose of reasons of the system changing. Here, we propose an important concept "institution balanced ".AFL is the result of a balanced institution. In the last part, we applied Rights Theory to the analysis of AFL. We made a detailed analysis of the definition and transaction of rights theory and studied the relations between the theory and the definition and transaction of jurisdiction in PIL. Then we examined the specific performance of AFL in the definition and transaction of jurisdiction and the relationship between AFL and the generation, the ease of the transaction costs. After that we discussed those two relations in the Italy Statute Theory Period. In short, from the institution perspective, AFL is a result of the legal system changing brought by the requirements of balanced institution. The process of AFL is also the process of the definition and transaction of jurisdiction in PIL. AFL is the performance of the "governance structure (long-term contract)" which is to reduce the Transactions Costs efficiency. "Act" means the hedonomics analysis of AFL. The theories include the Bounded Rationality, the Bounded Willpower, the Bounded Self-interest, the preference theory and evolutionary game theory. In the first part, we initially introduced the contents of the various theories and the relations with AFL. In the second part, we made a specific analysis of the "three bounded" theory's corresponding performance in AFL issues. In the third part, we used cognitive theory to analyze ALF in the light of the specific historical details in the designated period. In the forth part the evolutionary game theory analysis was divided into four stages, including the formation of the acts of AFL, the formation of the rules of AFL, the acts under the guidance of rules and the balanced formation about AFL. Finally, we came to the first important conclusion in this paper that the theoretical core of PIL is "evolutionary." In short, from the perspective of "act", AFL is the performance of the theories including the "three bounded" and the randomness of preference, is the result of cognitive changes, is the combination from rational and the irrational factors and is a kind of evolutionarily stable strategy."Market" refers to the supply-demand theory analysis of AFL. In the first part, we demonstrated the feasibility of the Supply-demand Theory analysis of the market of PIL. In the second part, we analyzed the supply-demand relationship in the PIL market led by AFL, including the analysis of the supply-demand subjects, the legal product, and the type of market, and demonstrated the characteristics and affective factors of the legal supply and demand, and pointed out the meaning of the supply and demand balance in PIL market. Then we got the second important conclusion that the evolution (development) path of PIL is competition and cooperation. In the last part, we came to use the general conclusions of the Supply-demand Theory to analyze the legal market in the Italy Statute Theory Period, and to further explore the reasons of AFL in the "market" framework. Also we started the analysis from the supply-demand subjects, the legal product, and the type of market, and demonstrated the characteristics and affective factors of the legal supply and demand in this period. Then we discussed the balanced three-phase in the commercial law market closely related to AFL, as well as from a legal market perspective that re-interpreted the Italy Statute Theory. In short, from the market perspective, AFL is the inevitable requirement of the balanced supply-demand in the legal market. AFL brings out the general principle of the competition and cooperation, and produces a market named AFL. In this market, competition and cooperation mechanism plays an important role.Sixth, we tried to find some enlightenment and offer some suggestions about China's legislative theory and practice through the economic analysis of AFL. The technical line is "conclusion-legislative theory-legislative practice. In the Legislative theoretical level, we believed that the core theory and the development path of PIL is the fundamental theory guiding China's legislation. We think that the constructivism and Darwinism combining theory is the basic theory of legislative guidance, and the combination of special and general , real justice and post-conflict justice, as well as combination of flexible and rigid theory of is the specific legislation theory. In the legislative practice, we have put forward the relatively specific proposals on resolving the "absence of legislation", the most closely linked principle, the principle of party autonomy, "enabling" principle and "directly applicable law", at the same time provide the relevant theory.In summary, we accessed the basic concepts closely associated with AFL by the definition of the basic issues on the economic analysis of PIL and the positive test to the mainstream paradigm analysis. Then through the application of these concepts and the analytical framework "institution-acts-market", we got a comprehensive, detailed and dynamic description of the AFL phenomena through with we drew on the general conclusion about the core theory and development path of PIL. Finally we tried to find some enlightenment and offer some suggestions about China's legislative theory and practice in the base of the description.