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A Research On Informal Constraints In The Transitional Stage Of Chinese Market Economy

Posted on:2005-09-20Degree:MasterType:Thesis
Country:ChinaCandidate:R G XieFull Text:PDF
GTID:2156360122495415Subject:Industrial Economics
Abstract/Summary:PDF Full Text Request
Market economy is essentially the economy of unity of ruling by law and ruling by virtue. The establishment of formal institutions is the necessary choice and prerequisite condition of market economy. But in read economic life it is not enough to have formal institutions and nation's legal system has also its unavoidable defects, that is, it is hard to adapt to the multiplicity of market economy, it can not have a capacity of the multiplicity of the market benefit as the main part demands and the complexity of benefit results completely. It is difficult to form social cooperating force between people depending on only law system. Under these circumstances, the arrangement of informal institutions becomes a kind of inevitable choice. In real economic life, virtue constraints are quite necessary and important. Creditability is the core of virtue constraints. This paper will discuss the creditability as informal constraints and Chinese traditional virtue cultures from the perspective of the new institutional economics. The whole thesis consists of five chapters:The introduction raises points of study.Chapter One: The definitions of several important concepts and review of theories both at home and abroad.( I ) The definition and explanation of the main concept of this thesis: 1.institution 2.formal constraints and informal constraints 3.the new institutional economics 4.Chinese traditional culture(II )Review of theories both at home and abroad Chapter Two: Positive analysis from the point of view of economics as informal constraints of creditability. Firstly we analyze the present social credit situation of our country by using creditability revenue curve; explain that our market main body lack the enthusiasm for safeguarding creditability; the vicious circle that creditability mechanism falls into reasons that causes China's present terrible credit environment. Then we will respectively expound that in market the different of transaction main body's future transaction expectation will result in the difference ofcreditability mechanism's efficacy by two game models : i. e one -time game and repeated game . On the basis of above points we farther analyze the conditions and system factors that ensure creditability mechanism playing roles.Chapter Three: The double function of informal constraints.Positive function: 1.Chinese traditional culture emphasizes virtue value has a guiding function on social economic life. This value idea can obviously purify the mood of society and reduce market transaction costs greatly. 2.The spirit of constantly striving to become stronger and energetic. 3.The value tendency characterized by peace and neutrality. 4.The managing thought characterised by the idea that human orientation. 5.The managing means characterized by the idea that is strict with oneself as well as others and virtue is the major and penalty is subsidiary to it. 6.The spirit dealing with concrete matters relating to work has the following features; restricting lust by virtues; emphasizing thrift and a tendency of groups.Negative Functions: 1. The value tendency produced from the framework of Chinese ethics -politics culture paradigm function under the condition of modern market economy will inevitably lead to unreasonable system arrangement and is unable to arousing the enthusiasm of individuals fully. 2.The conflict between the value notion considering duty important and paying little attention to benefit and the demands of market economy is the main thinking obstacle factor in developing socialist market economy. 3.Advocating virtues and neglecting science results in the development of market economy lacking the support of full scientific and technology consciousness and demands. 4.The prevailing of rule by virtue tradition and the lack of rule by law tradition makes people's senses of laws getting blunted. Therefore, it is hard to carry out the legal principles that we must persist in developing market economy. 5.The distribution notion of equalitarianism challenges the multiple distribution pat...
Keywords/Search Tags:Institution, Formal constraints and Informal constraints, The new institutional economics, Chinese traditional culture, Repeated game
PDF Full Text Request
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