Regulate The Behavior Of The Government: An Effective Path To Reduce Transaction Costs In Process Of Regional Economic Development

Since the late of 1970s, China's economic reforms have had history of nearly 30 years. The socialist market economic system is gradually established in the country. Local government become as a relatively independent of the interests, The traditional administrative divisions for the natural economic ties have been gradually broken, Regional economic development become the characteristics and trends of China's socialist market economic development. As the external institutional environment and internal institution of governance mechanism is not yet perfect, the acceleration of regional economic development , provided the opportunity for the local governments of increasing boasted Enterprises transaction costs ,by setting up trade barriers and rent-seeking. As the increasingly high transaction costs of the local government, hindered greatly the realization of market transactions, National unity market is not conducive to be established. Meanwhile, the image of local government has also been damaged tremendously.Based on the situations, the thesis tries to regulate the behavior of the local government from the angle of the institutional economics, combining the principle with politics science and administration and provide an effective reform path to reduce the transaction costs. Theoretical analysis, this paper discusses the theory of transaction costs of early and later some mainstream views and adopted the theory of comparative analysis, find out the cause of transaction costs, proof of the applicability of the theory for studying on the local government. According to Williamson's three modes of analysis framework on the transaction costs, the author analyzes the reason why he chooses regulating the behavior of the government to solve the transaction costs.The author study and refer to the outstanding achievements of their predecessors, tries hard to make some breakthroughs. On one hand, the thesis breakthrough the angle of view in the study of past transactions cost economics of pure ideas and introduce the principle of the political science and administration. On the other hand, the author presented and demonstrated that the trans-regional enterprises are the logic media of this view in the process of regional economic development. Then try to base on the conclusion of the transaction cost theory, the thesis studies the important influence on the transaction costs from local government. Then put forward a valid reform path to reduce the transaction costs from the local government by regulating the behavior of the local government. The thesis is divided into three parts, the first is the theoretical analysis. Analysis the classical theories of transaction costs with the current process of regional economic development in China, inferred the impact and reasons of the transaction costs which caused by the local government. And put forward the theoretical framework of the proposed transaction cost analysis. Base on the theoretical framework in the first part, the second and third parts elaborate how to regulate the local government behavior from different angles, and put forward constructive suggestions. The second part focuses mainly on the perspective of binding mechanism for local governments to achieve the regulation, and the third part focuses on the act modernization.Resolving the question on the transaction costs of local government is very complex and the contents are abundant. It's not enough apparently if the thesis bases only on the author's superficial studies. This thesis does not involve excessive transaction costs associated with the other two important areas: the external institutional environment and internal institution of governance mechanism. Meanwhile, the study on regulating local government is still not perfect which need to be improved. The author will go on to study in the future.