The Market Economy With Chinese Rural System Changes

Chinese rural areas have experienced an extremely extensive and profound institutional change since 1978, it's basic direction is marketing. Marketing is a development process of dynamic state, including social production mode, life style and economy, politics, culture and society change, institutional change is the concrete embodiment of marketing's dynamic evolution. Institution is a kind of behavioral rule, the level of marketing dissimilarity, the person's behavior pattern is also different, the formation of the institution comes from person's behavior choice which base on maximize benefits. The variety of relative price is the media of marketing evolution and institutional change. This paper analysis institutional change since 1978 and it's perform in Chinese rural areas by basic instrument of economics such as qualitative analysis and quantitative analysis, positive analysis and normative analysis;It's aim is to find the relative between behaviors change of all stakeholders and institutional change in Chinese rural areas , both induced by economic marketing , summarizes the law of institutional change and economic development, provide useful revelation and reference for new socialistic village construction.In 1978, Chinese rural areas institutional change result from famine ostensibly, but its deeper reason is the variety of relative price of land and labor force, the market bargain makes this kind of difference noticeable, in order to obtaining the latent income make the institutional change can extend and maintenance, this is the personal need factor of the farmland institutional change. At the same time, high intendance cost of collectivization and low efficiency of national economic management of talso inspirit collective and government participates farmland institutional change to obtain the price different in public realm , these is the organizational and national need factor of institutional change. The supply factor of institutional change lie in below: marketing enlarge personal and organizational choice aggregate, knowledge growth, technique progress, organizational cost and political support change , all these decrease cost or increase income of institutional change. The resultant force of demand and supply makes the institutional change become various participant's consistent behavior. The development of the market economy causes relative price difference then cause institutional change, reverse , institutional change inspirit the production factor go into high income realm from the low income realm, this come into being the positive feedback which promote production factor marketing further, as a result, it drive market economy advanced in Chinese rural areas.Chinese rural economy marketing is an evolves process gradually, and further more, because of everyplace area reform progress and develop conditional difference, everyplace area marketing level , each department and section marketing progress is unbalanced. The process of marketing evolution isn't a monotone increase or smoothly, some time , it will jump up, such as 1998 compare to 1997, the marketing index raise 3.76% net; some time, it will fall, such as 2000 to 1999, the marketing level descend 0.68%; the evolution speed of each index of marketing is also different, it's characteristic is not- equilibrium, the currency level show high level well balanced ;But the development of agent organization , the government function conversion and market environment construction is the biggest restrict factors to economy marketing in rural areas. Measure 2002-2004 marketing level from landscape orientation of regional rural area, the author come to such conclusion: the marketing level is low in western region, the main factors is village residents' income source compare single , enterprise develops insufficiency, labor force commercial level isn't high, new economic organization lack , market environment construction level low etc. ; Government's policy of "more give and less turn" will promote marketing effectively, government should build the support mechanism corresponding during the period of pushing forward marketing in rural areas.According to demand and supply theories of institutional change, out of balance and balance will appear alternately in the process of institutional change, when institutional change take place, the development process of old institution break off, new institution provide the motive and order for the economic development instead, as a result, the institutional change and economic development represent as a progress of leaps process in the long-term ;Because of the characteristic of path dependence , knowledge accumulating, collective study, the small-scale an the condition of institutional change may be gradually and continuously. Chinese economic institutional change is a concurrence process of staggered and continuously .Agriculture is an industry which obtains material resource from nature directly , its production depend on natural environments, such as land and weather...etc. it own the characteristic of diversity and distribute in a vaster space, in process of agriculture production, working process should be adapt to natural forces function process, the industry characteristic of agriculture decides the characteristics of agricultural institution and organization in a large extent .Under the market economy system, family is the basic organization mode in agriculture production; new cooperative economic organization is a institutional innovation , it rise result from peasant response to the contradiction of small farmer and big market ,it is the endogenetic yield of market economy; The village business enterprise is a kind of economy organization which develop according as peasant react to scissors difference in prices between industrial goods and agricultural products and in order to weakening monopolization of industrial goods to rural areas.Pareto efficiency is the basic standard in measure economic marketing and institutional change in rural areas, it emphasize the improvement of peasant's absolute income position during marketing and institutional change, and can be measure by two dimension :efficiency dimension and fair dimension. When measure the efficiency of first industry by frontier production function , the author find that marketing is the main factor in improving product efficiency of first industry ,while education have no obviously related to the improvement of it's technique efficiency. When measure from fair dimension , peasant's income raises positive relate to marketing, the development of marketing reduced absolute poverty a great deal ;At the beginning of marketing, the income margin is narrow between village residents, but at the after period, the income margin is widen. The increase of increase from wages positive relate to education, if the level of marketing higher , the mechanism of induce each other between wages and education more strong.New socialistic village construction is large-scale institutional change as marketing develop to a higher stage, marketing will change village residents' income expectation, induce each economic player pay more attention to guards against risk more and has higher expectation to enlarge market scale, all this will change relative price and make the institutional change become various participant's common will, institutional change' feasibility come from economic development, knowledge accumulation and the counteractive of join WTO. new socialistic village construction mainly is a reduced institutional change and result from the common benefit of various participant's , therefore , when it is carried out, farmer' will should be respect, development rule of agriculture and rural economy should be complied, and prevent this institutional change from falling into high cost, low income trap. The key factor for new socialistic village construction obtaining success lie in building up higher class market player, such as new farmer and new economic organization .