Urban And Rural Two-way Flow Of Urban And Rural Co-ordination Perspective, Construction Of Market System

For a long time, the differences of historical conditions in urban and rural markets, policy preferences and institutional arrangements in the two markets in China,resulted in different levels of development in urban and rural markets,and the imbalance is constantly widening with the economic development in past two decades.The long-standing dual structure of urban-rural markets caused the co-existence of developed urban market and undeveloped rural market,while the production and circulation of the goods and factors in the two markets are separated,which at present is the most basic characteristics of the commercial circulation of urban and rural market system.It has been the bottleneck of China's economic development.The flow of the goods and factors in the urban and rural markets are blocked by the division which destoryed the condition that the resource flows freely in the social mass production, restricted the improvement of urban and rural market system and delayed the integration of urban and rural markets.Therefore, another revolution after the reform of the state-owned enterprise which is called:"to break the urban-rural dual economic structure and integrate the urban and rural markets",comes along,and it comes to a new stage in which the economic and social development of the integration of the urban and rural markets,in which the relation of urban and rural markets shifts from opposition to the bidirectional interaction.The paper covers the following aspects:Firstly,analyzes the formation mechanism of market system in the context of urban-rural dual economic structure;Secondly, apply the law of relative price to estimate the division of the urban and rural markets and get the reasons of the division of the two markets as well as the constraints to the integration of the two markets;Thirdly, bring out the contents about the construction of the commodity market and factor market;Fourthly, puts forward the approach and the policy options to support the construction of the bidirectional market system.The conclusion of the paper:Firstly,through the induced institutional change in the commodity markets and compellent institutional change in factor markets,the markets achieve the bidirectional flow in the two markets;Secondly,causes of the segmentation of urban and rural market systems result from the policy factor and the system factor,while the constraints due to three aspects:the level of the revenue and expenditure of people, outside environment of the trade,trade system;Thirdly,build the bidirectional flow market system,including industrial consumer goods market, agricultural market, labor market,financial market;Fourthly,the path to the construction of the market system:develop bidirectional flow of commercial circulation in urban and rural areas vigorously, promote institutional change in favor of constructing the bidirectional flow of market system in urban and rural areas,build public service system in favor of constructing the bidirectional flow of market system in urban and rural areas;to support the construction of market system in the aspect of fiscal policy,tax policy,financial policy,market regulation policy,information disclosure policy.