On Government's North Paradox In State-Owned Enterprise

Among the neo-liberalism campaigns in western society, the new institutionalism represented by Coase, North and etc. develops so rapid that it soon becomes the most attractive theory and it helps the classical economics transform into the conformity between economics and politics. In this process, the government theory is one of the most outstanding achievements. To new institutionalism economists, it is institution that determines the detection of economic growth. The government plays a very important role in any long-term institutional change. Because of this, institutionalism brings the government theory into the economics growth theories. Based on the hypothesis that everyone is finite-reasonable and cares his own benefit, the institutionalism points out that the government has the character of selfness, the government has double aims when he participates in economics activities. Then the institutional economists call this phenomenon "North Paradox", which tells us that economic development can not succeed without the help of the government, meantime, economic development is also troubled by the government.So we can see that institutionalism government theory shows the localization of the government. And we can use this theory for reference to analyze our government activities during economics transformation period. We should pay attention to the negative influence to economics by the government. In this article, I will discuss the effect of government...