Industry Association Analysis Of Transaction Cost Economics

When Coase proposed the dichotomy of the market-enterprise economical coordination mechanism, he neglected the existence of the middle organization. In fact, the market and the enterprise do not have an explicit boundary and the middle organization is the universal form. The extreme situation is rare. The middle organization takes advantage of its low organization cost to reduce the transaction cost between the market and the enterprise.Trade association, as a specific form of middle organization, has a very important function. Along with the development of market economy and global economic integration, the function of the government and enterprises becomes more limited while the trade association takes over the function that used to be done by government and enterprises. According to the experiences of the developed countries, the trade association is the major force of establishing the self-protection mechanism in accordance with free trade under the international rules. Within the WTO system, trade conflicts and arguments happen all the time. The contradiction between dumping and anti-dumping in the world market will become more serious as the world market saturates. From the international practices, we can see that trade association has been the major plaintiffs in these cases. The national enterprises get its protection from the trade bulwark that the trade association forms.The relationship between trade association and anti-dumping is now a hot topic among scholars. However, their research has been restricted to political suggestions. Utilizing the Cointegration and Error Correction Model to study, we can draw the conclusion that the rate of suing has the minus relation to the prosecution rate. And we can also draw the conclusion from the Granger test that the rate of the trade association responding to the action is granger reason of the increase of receiving the anti-dumping in China.China had a typical government-enterprise structure in the past, so the middle organization including trade association has not developed fully and this study aims to draw the attention of the underdevelopment of middle organization.From the perspective of transaction cost economics, this thesis explains how the middle organization can reduce the transaction cost. The contrast analysis and other empirical analysis shows that trade association has the advantage of reducing transaction cost in responding to suing of anti-dumping over government and enterprises. The use of regression analysis overcomes the shortage of qualitative analysis.