On Government Intervention In The Process Of Economic Transition

The function of government is an antiquity and reality question; government intervention (GI) strains an important effect to the society economic development. How to execution GI to make society and economic development is the key of China ,because of its economic transformation。This thesis makes its founds on theory studies, through the retrospect of GI theory, establishes a framework of market GI economic analysis,and through studying the practice of China economic transformation, make out GI general and special function . The first part of this thesis, through the retrospect of GI theory in the virgin time (before the middle of 17th century), the steadily developing time (the middle of 17th century to the thirties of 20th century), the fast growing time (the thirties to seventies of 20th century), the present maturing time, gives some beneficial results. The second part analysis market failure (MF), new market failure (NMF), government failure (GF), and give some remarks on GI general function. Part one and part two make a framework of market GI economic analysis. The third part analysis GI general and special function in the practice of China economic transformation. The research of GI in this thesis is preliminary and maybe debatable. The new views that should be mentioned including:Firstly, this thesis retrospects systemically the historical development of GI theory, and evaluates objectively the positive aspect of the main economics schools.Secondly, this thesis establishes a framework of market GI economic analysis.Thirdly, this thesis studies some important questions in China GI in the new century, and differs GI general and special function. As the GI general function on the condition of the Market, the GI mainly solves the questions of stability, efficiency and indifference. As the GI special functions on the condition of the Socialist Market and transformation, the GI mainly solves the questions of the implantation of the Market institution, the alteration of the Government function and the control of the Government self-inflating size, the harness and eliminating of corruption and rent-seeking from the source of and by the institution, and the enhancement of the political, economic and cultural accordingly improvement.