Study On The Government's Functions In The Development Of Finance Industry After China's Entry Into The WTO

Since 1970s, many developing countries take the finance liberation as the basic contents of the economic institutional reforms. The unsuccessful practice of many developing countries makes people doubtful about the finance liberation, however. Some economists raise new theory. It's not hard to find out by analyzing the perspectives of supporters and objectors that the difference between them is not that whether the finance liberation is necessary, but how to liberate. In the process of finance liberation, various theories have no objection on the governmental functions. But they have different ideas about how much the governmental function is and how to play.After 1978, China carried out some reforms similar to finance liberation. The object of the reform is not clear but the main argument is marketization. The finance system, including the institutional system and market system, is in diversified structure. We seemingly have possessed the full set of finance system similar to the developed countries. In fact the finance market reform is left far behind the general economic marketing process. After the entry into the WTO, China opened its finance service market greatly. Chinese finance enterprises are going to take part in the international competition at every aspect. This competitive pressure forces Chinese finance industry to carry on a deep reform and count down its reform in order to counteract the bad impact that the WTO probably brings to domestic fmance industry. The primary trend is to accelerate the finance system reform which aims at the build-up and perfecting of the market competitive mechanism and diversified property-right mechanism to raise the efficiency of resources location, and strengthen the function of the supervisory division to guard against finance risk. The government is to play a leading role in this process.There are lots of articles researching on how to deal with the challenge and impact that the open economy brings. They are concrete. But there are rare articles which analyze the governmental function in the finance industry with the use of new institutional economics theory. The new institutional economics studies the regulation by means of economics. The development of the new institutional economics affects the economics field deeply. It provides a brand new visual angle for people to analyze the economic and social problems. This thesis is trying to research the governmental functions on finance industry development after the entry into the WTO and puts forward some detailed policy suggestions.The content of thesis can be divided into 5 parts, and the structure is as follows:Part one: The correlative theory of new institutional economicsThis part introduces the research method and theoretical basis used in the whole thesis. Firstly the definition, development and research tools of the new institutional economics are introduced and institutional changes and path-dependence are elaborated. The emphasis is on elaborating the function of institution in the economic development and eliciting the governmental function in the build-up of institutional structure as the theoretical support.Part two: The finance deepening theory in economic development In this part, the finance deepening theory is firstly introduced and the experiences of the finance liberation reforms in the developing countries are induced. Then a new theory-the theory of finance restraint is analyzed and it is pointed out that the finance liberation is still the direction of finance development. The research work is on the process of finance liberation and the role that the government is to play.Part three: the influence of the accession to the WTO upon the development of the finance industry in our countryBy introducing the regulation on the finance industry in the protocol between China and the WTO, this part is to illustrate the influence of the accession to the WTO upon the development of the finance industry: accelerating the process of finance deepening. It concludes the leading role of the governme...