Transaction Costs Of Smes In China Sustainable Development Of Environmental Studies

The small and medium-sized enterprises(SMEs) have play an important role in increasing the employment opportunities and promoting economy growth. Since the beginning of reform and opening up, China has succeeded in furthering the development of small and medium-sized enterprises in the market-oriented economy, national industrialization and urbanization process. However, the external development environment for SMEs in China is not yet perfect. On the basis of transaction cost theory,this paper makes a research about the environment for SMEs development,the quantitative characteristics of the environment for SMEs development and the positive analysis of the relationship between the development environment for SMEs and the performance of SMEs.The first part of this paper proposes several hypotheses to be tested:per capita GDP, the SME performance,the SME innovation have the reverse relationship with the transaction costs. The second part of this paper clarifies the essence of transaction costs,the main factors that affect the transaction costs for our SMEs and makes a theoretical framework between transaction costs and the environment for SME development. The third part of this paper translates the multiple indicator index that affect the transaction costs into the transaction efficiency indicator,by the means of Principal Component Analysis,in order to study the quantitative characteristics of the environment for SME development. The forth part of this paper establishes a regression model, makes an econometrics analysis between the transaction efficiency variable and the per capita GDP variable, the SME output variable,the SME innovation variable by the use of much panel data,and examines the variables sensitivity to the transaction from the variables of per capita GDP,SME output and SME innovation. The fifth part of this paper makes the empirical analysis between the transaction costs, the government behavior and the development of SMEs by the examples of Jiangsu South and Wenzhou. The sixth part of this paper explains the behavior characteristics of the SMEs from the perspective of transaction costs:on the imperfect external circumstances,it is rational for the SMEs to choose endogenous financing, closed property structure, family management.Finally,it analyses the drawbacks of theory and policy,and concludes some policies to support the SMEs from the perspective of transaction costs.