Equilibrium Analysis Of Chinese Creative Industry Regulation

The sound and sustainable development of Chinese economy cannot rely on single investment element as a driver, which essentially needs the change of economic development model. Creative industries are a new economic pattern which drives economic development and promotes the economy transformation through the creativity considered as the core factor. This new pattern satisfies the needs of industrial structure rationalizing, economy development ordering and social development persistence, which is able to change the economic development model counted on the investment and improve the social welfare. However, creative industries have a strong representation of the market failure. It is impossible to complete the optimal allocation of the resource simply through the force of market. Therefore, it is necessary for the government to intervene the market by the appropriate method of government regulation. Though China has somewhat undertaken exploration for the creative industries definition, characteristic research and policy constitution. However, for the government, there are some problems in the process of supporting creative industries. Under the influence of a series boost policies, the creative industries have not completely achieved the goal of economy transformation. On the one hand, it reflects the scientific deficiency of the published creative industries development measures. On the other hand, in the process of policy constitution, it also exhibits the rationality shortage of creative industries policies. Therefore, the research on how to realize the sound and ordering development of creative industries through the government significantly impacts on the reality and theories.This article based on the review and analysis of the literature to suggest that use the regulation economic theory to analyze the possibility of the development of creative industries; then analyzes the economics connotation of creative industries and property, moreover, researches on market failure performance of creative industries and points out the reasonableness and necessity of government regulation creative industries. Furthermore, from the angles of static equilibrium and dynamic equilibrium, it explores the elements and measures of achieving creative industries regulation equilibrium and constructs the theoretical framework of the analysis of Chinese creative industries regulation in the reality. Secondly, through the analysis of status of Chinese creative industries, the studies of the demand and supply of creative industries regulation, and the behavior of the main body in a process of game, combined with the experience of overseas creative industries regulation, the paper analyses the constraints of creative industries regulation in China. Finally, on the basis of the theoretical analysis, combined with the specific circumstances of our industry, it proposes to build Chinese creative industries regulation system from the aspects of behavior and institution and achieve the goal of making policies and suggestions of creative industries regulation.The main work and research findings are as follows:Firstly, on the basis of analysis of the core factors, industry property and development of creative industries, with the regulatory economics-based assumption, it analyses the market failure performance of creative industries in the imperfect competition, incomplete information, as well as the external cover, which illustrates that creative industries are in need of government regulation to compensate for market failure, improve the social welfare, pointed out that the government cannot let creative industries go freely but orderly and sound development through a appropriate regulation guide.Secondly, through the analysis of the regulation of supply and demand and the property and behavior of interest’s groups in the regulatory process, the paper explores the factors of the static equilibrium and dynamic equilibrium of creative industries. The findings illustrate that: first, under the restraint of certain costs and benefits of regulation, the supply and demand of regulation need to meet the requirement of regulation, otherwise, there will be the phenomenon of the government offside or absence, which is bad for the exhibition development. Second, if you want to achieve the balance among various behavior subjects in the process of regulation, it needs to change the constraint conditions of various interests groups, especially the behavior of the government regarded as the regulatory agency. Otherwise, it is easy to find rent or moral hazard phenomenon which prevent the industry development. Moreover, if the realization of dynamic equilibrium behavior could not be changed, the supply of government regulation is difficult to meet the real needs of industry regulation, not to mention the improvement of social welfare.Thirdly, through the study of the current situation of creative industries in China, it can be found that the present supply of creative industries regulation cannot meet the needs of regulation. And the behavior subjects in the regulation system are not specific. Therefore the creative industries havn’t reached equilibrium no matter in static or dynamic aspects. Besides, with the references of United Kingdom, United States, Japan, South Korea and Singapore’s experiences of creative industries, it is found that the factors which restrict our creative industries to achieve regulation equilibrium are concepts, systems and structure. Therefore, according to diagnosis of the present situation of Chinese creative industries, drawing on the experience of the development of foreign industry regulation, this paper proposes to construct a multi-dimensional regulation system. It is addressed that only by constructing a regulation system and improving the system, reducing transaction costs of government regulation creative industries, determining the appropriate the degree of encouragement, shaping suitable environment of implementation to achieve the goal of creative industries regulation equilibrium, and ultimately it would promote the healthy development of creative industries at home, stimulate economic growth and improve the social welfare.