Study On The Optimal Size Of Chamber Of Commerce

In China with a maturing market economy, as a form of organization between the government and enterprises, chamber of commerce, is playing an increasingly important role. Based on the model of the supply of public goods and club theory, this paper analyzed the respective optimal size of collective-action chamber of commerce and club chamber of commerce, and then made a further empirical analysis with ANOVA on the relationship between the size and functions of the chamber of commerce. The results showed that, with the increase in the size of chambers of commerce, implementation of the functions of collective action intensified while implementation of the functions of club action became larger at first and began to decrease after a certain degree. So for collective-action chamber of commerce chamber, the optimal scale equals the size of the interest groups. For the club chamber of commerce, the optimal size lies when the marginal benefit equals marginal cost. On this basis, the article finally analyzed the current situation of China's chamber of commerce and found that there was a low-scale problem, and put forward several recommendations to improve the size of chambers of commerce.