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Sino-Japanese Economic Relations From The Visual Angle Of Institutional Evolution

Posted on:2009-09-05Degree:MasterType:Thesis
Country:ChinaCandidate:J Z WenFull Text:PDF
GTID:2189360242982251Subject:World economy
Abstract/Summary:
In the context of regional economic integration, Sino-Japanese economic relations play an important role in economic development of the two countries.It is easy to see from the traditional regional economic theory based on comparative advantage that the two countries have great potential for economic cooperation. However, the reality is not the case.We all have the notion that it is political, historical, cultural and other non-economic factors that affecting the development of economic relations between the two countries.However, if continue to ask,why and how these factors influence the normal development of economic relations between the two countries?Clearly this issue could not be explained by the traditional regional economic theory.The reason is just the visual angle. That is to explain the economy by economy itself. While they acknowledging that the political, historical, cultural, and other factors affect the economic relations, But only study them as exogenous variables.In recent years, with the development of new institutional economics, institutional factors provide an approch to this problem.Particularly as the introduction of the international system and transaction costs for the study of international economic relations, research in this realm has taken a solid step forward.Especially in the past a few years, directly improved by Professor Mang Jingshi in the Japan Research Institute of Nankai University, Mr. Tian ye in People's University of China as well as Professor of Chen zhiheng in Northeast Asia Institute of Jilin University,the application of the institutional economics on regional economics theory made many breakthroughs in this field.Although these studies made political and other factors endogenous variable in the study of economic relations between countries, all elements is less dynamic.On the basis of the study mentioned above I introduce the theory of institutional evolution on Institutional economics. Accoding to the characteristics of path dependence I realized that,Although there are good conomic conditions in cooperation between China and Japan,a large number of historical incidental events influence the equilibrium of economic relations between the two countries. The non-equilibrium solution goes to self-reinforcing path-dependence by formal and informal institutions.then it be locked in a inefficient awful cycle and made the mutual economic cooperation in difficulty.In this paper, the idea is, in ordor to study the path-dependent of institutional evolution, firstly it comes to the two roles of international economic institutional evolution ,the country and the people.Nations made the path dependence of self-reinforcing institutional evolution by the formation of state theory through a mandatory formal institutional evolution.The people made the path dependence of self-reinforcing institutional evolution by the formation of ideology theory through a Induced informal institutional evolution.Eventually,the Sino-Japanese economic relations be locked-in through the interaction of the two kinds of path-dependence. According to the logic, this paper consists of three main parts and conclusions .The first part is mainly about the theory of institutional evolution.institutional evolution is the course of the creation of a new institution , being changed or abandoned.The evolution must results in a more efficient institution.Institutional evolution is a dynamic process.the prolems are who launched process and why, how it goes, and what is the result of it. Therefore, Institutional evolution theory should include, the subject , driving forces and the ways of Institutional evolution.Compared with traditional regional theory the institutional evolution theory Explain the role of non-economic factors exactly.The second part of the system will be introduction of institutional evolution theory to economic relations between countries.Since this is a trial work the feasibility analysis is from the two aspects of theory and practice firstly.Collective behaviour that Emphasized by the system itself and the organizational nature of the State makes the expansion possible. This has also been confirmed in the study of international institution.Its necessity is mentioned above. It is also necessary for the various elements to be dynamic while the transaction cost theory introduced into the study of regional economic relations.And more over it shows the complexity of a difficulty of the Sino-Japanese economic relations. The second small part is about the path dependence in the economic relations between countries in the process of development.after introducing state theory on state and path-dependent of institutional evolution and ideology theory on the people and path-dependent of institutional evolution, I expand it according to economic relations between china and Jpan respectively.Therefore,it foreshadowed the third part of the analysis on the cases.Firstly the third part pointed out that Sino-Japan economic relations can hardly reach a cooperation is due to the path dependence.Then Analysis on path dependence of the Sino-Japan economic relations was made from three aspects ,locking-in in history, politics and culture.war of invasion China by Japan and being not completely reflect on it after the war made Sino-Japan economic relations be locked-in in history.The limitations of the Government or political parties and The media to stiring up troubles The expansion of nationalism.Lastly, lack of regionalism and The expansion of nationalism made Sino-Japan economic relations be locked-in in culture.The fourth part is mainly about how to solve Sino-Japan economic relations lock-in problem.This remains see from the two aspects,formal and informal institutions.Firstly,according to the Progression and Cumulativeness of informal institutions it focus on the non-governmental trade and cultural exchanges between people.As for the the formal institutional evolution, In view of the importance of formal institutions itself, I mde a separate part of it dwelling on improving the institutional cooperation on FTA between China and Japan along.As for the subject of formal institutions,the paper select the agriculture protection and agricultural trade friction to analysis of the behavior of government.Finally, comes the the conclusions of this paper. People just neglect the political cost and other non-economic factors leading to gap between thoery and reality on Sino-Japanese economic relations under traditional regional economic theory.Although people reached consensus that political, historical, cultural and other non-economic factors affect the Sino-Japanese economic relations it is not the key to the difficulty of economic relations between the two countries.The real reson is that the path-dependence formed in the non-economic factors in the institutional framework and economic interaction process. In short, Sino-Japanese economic relations between the two countries being locked in a state of inefficient non-cooperation is the results of evolution of various interactive factors.Except for these two factors,it including factors such as history and reality, economy and politics, government and the people.They not only game with their respective antithesis each other,and they interact with other factors complicatedly.That is, economic relations is not only the result of economic factors. These factors are at the same level.Because they have been put into concept of the institutions, as same as endogenous variables in the process of institutional evollution. And the state of economic relations is only a small component part of the evolution process.Therefore, the solution to the locked-in of Sino-Japanese economic relations is only from the two aspects of formal and informal institutions.
Keywords/Search Tags:Sino-Japanese
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