The Study On The Effect Of Quality And Character Of Labor Contract On Relation-Specificity Capital In Private Enterprises

The private enterprises of China have been the most vital and dynamic part of the Chinese economy since 1990s'. In the new century, more and more private enterprises have been entering many industries with permission of our country and growing with the encouragement of privileged policy provided by our government. With the opening of the industry entering and the expanding of the market, the market competition has been fairer, more just and opener. The international market is opening toward China after entering the WTO. And Development of the Western Region has nourished the great market, providing excellent stage and expansive space for the development of the private enterprises. All these above show that the private enterprises of China have gone into the "golden time" for development.The private enterprises of China have two typical patterns in the respect of developing process and the structure of the staff. One is the down-to-up pattern, namely Zhejiang Pattern, the other is up-to-down pattern, namely Elite Pattern. I divide the private enterprises of China into two kinds of typical patterns, because I would like to locate my study of private enterprises on the first pattern, or Zhejiang pattern. Then I can define the Relation Specificity inside the private enterprises of China on the basis of the location. Besides, I would study the two kinds of labor contracts on character, one is Relation Contract, the other is Market Contract. I have proven the influence of the relation specificity capital to the quality of the labor contract through empirical analysis by further.At last. I have approached the characters of the present labor contract in the private enterprises of China and their advantages or disadvantages in the view of Transaction Cost. Then I have proposed the corresponding strategies and suggestions on the institutional construction of the private enterprises. I have still proponed the feasibility of transformation from relation-governance pattern to modern corporate system and corresponding ways.