The Study Of "Exchanging Market For Technology" Policy Of China

However, most studies of the policy of "exchanging market for technology" ignored the impact of the government and its operating mechanism, as the supply of policies participating in the process of policy implementation. As the study shows that political decision-making mechanism is a significant role in economic decision-making, especially in transition countries such as China. The evaluation of the effectiveness of "exchanging market for technology" must take into account the specific mechanism of policy implementation.In this context, from a view of policy making, this paper discusses the decision-making process of the policy preferences of local government. This paper built a multi-task principal-agent model by Policy preferences to the local government as a decision variable. This model describes the relation of central-local government under asymmetric information. The central government always gives the local government incentives according the return of the local policy.Otherwise, this paper assumes that (1) the appraisal systems for local officials is relative performance evaluation based on the size of the GDP; (2) Central government appoints local officials and term of office of local officials is limited; (3) the Risk nature of technology investments and related policies is greater. According to the result of multi-task principal-agent model and the assumptions, this paper concludes that:(1)policy Return and implementation effort of local government is positively correlated with the incentives of the central government and measurability of the return policy negative correlation with the risk of policy.(2)because of the appraisal systems for local officials of China, the defect of policies achievements assessment system and the imperfectness of Technology development and protection system, the return of scale policy was strengthen, while weakening the incentive of technology policy, then Inadequate supply of technology policy educes the local enterprises to imitate the more advanced technology and learning opportunities, Impeding industrial upgrading; (3)The lower disposable resource capacity, the more local governments prefer the scale policy; (4)The scale policy of local government can increase output, and technology policy can promote the technology level of foreign enterprises;(5 local government t preferences scale policy, rather than technology policy, and Small-scale foreign-funded enterprises, even with the higher level of technology, are make out. Therefore, considering the central-local government relation, the effectiveness of policy "exchanging market for technology", which is of the significant success in terms of scale and a significant failure in technology, is not only subject to the policy environment, resources and market conditions, but also subject to the policy supply preferences of local government.