Research On Industry Equality Of Government Grants

Affording government grants is a way of intervening in the economy affairs by the governments. Considering politics, economy, society and other factors, in order to develop some industries or to restrain others, the governments of most countries and areas usually supply business enterprises with various kinds of subsidies. First, this paper has a brief historical retrospect about the research results of government grants at home and abroad, elaborates the target of government grants-efficiency or fair, on these theories, we expect to test the effect of government grants from the angle of industry, therefore, this paper then carries on a specialized research on the industry policies of Western developed countries, also researches the industry equity of China's government grants, and find out that in China the allocation of the government grants to industries is not fair. In order to resolve this unfair problem, we suggest a reasonable target of government grants, that is-keeping industries'development with the equity point.Main points and innovations of this paper's are: (1) In China, the allocation of government grants to industries isn't fair. We find that the number of listed companies in agriculture, forestry, animal husbandry, fishery industry who receive government grants was large, but the amount of grants money was much less than other industries, so the agriculture, forestry, animal husbandry, fishery industry didn't acquire benefit actually. (2)We find that the complicated relationship between the company and the governments is the main causation of the unfairness on allocation the grants.(3)When one examines whether the government grants'policy is successful or not, he can't use the growth of market quota or the industry layer of the target industry as a standard for judgment, the proper way is one should not only use the cost-income analysis method to check whether grants have promoted the economy growth of a nation as a whole, but also evaluate the effect of equity.(4) To build a harmonious society, this paper suggests keeping on the industries'develop fairly as a proper target of government grants.