Study On Chinese Government Function From Market Failure And Government Failure In The Period Of Economic System Transition

The market failures in the period of economic system transition of China are not only the ones in general meaning but are led to by the undeveloped market system economy and confusing market order. At the same time, the backward political reform, the unclear relationship between market and government and the problems of government functions in transition are also the reasons that caused the government failures. And government failures make the situation of market failures worse in the mean time. During the period of the transition in China, the particular government failures and the market failures greatly hinder the development of economy.Based on the related theory of economics and politics, the details of government failures and market failures are talked about and analyzed in the thesis to find the methods to remedy the specific market failures and government failures. Mean time, Chinese government functions are also suggested through the study of the specific situation of market failures and government failures by the author in the thesis in order to help solve the problems and quicken the pace of setting up socialism market economic system and increase its healthy development during the transition period. Government's function have different meaning and content in each different development stages of market economy according to the author. Thus only through continuing adjusting policies and effective reforming, government functions could then be performed better.